Indiana § 36-7-41-13 - Local professional sports development fund

Full text of Indiana Indiana Code § 36-7-41-13 — Local professional sports development fund, with citation guidance and answers to common questions.

§ 36-7-41-13. Local professional sports development fund

Sec. 13. (a) The local professional sports development fund is created. The commission may make expenditures from the fund only to accomplish the purposes of this chapter.

(b) The fund consists of the following:

(1) Grants, gifts, and donations intended for deposit in the fund.

(2) Interest that accrues from money in the fund.

(3) Money from any other source deposited in the fund.

(1) Hold the fund in the name of the commission.

(2) Administer the fund.

(3) Make all expenditures from the fund.

As added by P.L.119-2025, SEC.1.

IC 36-7.5ARTICLE 7.5. NORTHWEST INDIANA REGIONAL DEVELOPMENT AUTHORITY

Ch. 0.1.Findings Ch. 1.Definitions Ch. 2.Development Authority and Board Ch. 3.Development Authority Powers and Duties Ch. 4.Financing; Issuance of Bonds; Leases Ch. 4.5.Rail Transit Development Districts Ch. 5.Repealed Ch. 6.Blighted Property Demolition Fund Ch. 7.Lake County Economic Development and Convention Fund Ch. 8.Gary Metro Center Station Revitalization Fund

IC 36-7.5-0.1Chapter 0.1. Findings

36-7.5-0.1-1General assembly findings

IC 36-7.5-0.1-1General assembly findings Sec. 1. The general assembly finds the following:

(1) The eligible counties face unique and distinct challenges and opportunities related to transportation and economic development that are different in scope and type than those faced by other units of local government in Indiana.

(2) A unique approach is required to fully take advantage of the economic development potential of the Chicago, South Shore, and South Bend Railway and the Gary/Chicago International Airport and the Lake Michigan shoreline.

(3) The powers and responsibilities provided to the development authority are appropriate and necessary to carry out the public purposes of encouraging economic development and further facilitating the provision of air, rail, and bus transportation services, projects, and facilities, shoreline development projects, and economic development projects in the eligible counties.

As added by P.L.220-2011, SEC.667.

IC 36-7.5-1Chapter 1. Definitions

36-7.5-1-1Application of definitions 36-7.5-1-2"Airport authority" 36-7.5-1-3"Airport authority project" 36-7.5-1-4"Airport development authority" 36-7.5-1-5"Bonds" 36-7.5-1-6"Commuter transportation district" 36-7.5-1-7"Commuter transportation district project" 36-7.5-1-8"Development authority" 36-7.5-1-9"Development board" 36-7.5-1-10"Economic development project" 36-7.5-1-11"Eligible county" 36-7.5-1-11.3"Eligible municipality" 36-7.5-1-12"Eligible political subdivision" 36-7.5-1-12.4Repealed 36-7.5-1-12.5Repealed 36-7.5-1-12.7"Marquette plan" 36-7.5-1-13"Project" 36-7.5-1-13.5"Rail project" 36-7.5-1-14"Regional bus authority" 36-7.5-1-15"Regional bus authority project" 36-7.5-1-15.3"Regional transportation authority" 36-7.5-1-15.6"Regional transportation authority project" 36-7.5-1-16Repealed 36-7.5-1-17Repealed

IC 36-7.5-1-1Application of definitions Sec. 1. Except as otherwise provided, the definitions in this chapter apply throughout this article.

As added by P.L.214-2005, SEC.73.

IC 36-7.5-1-2"Airport authority" Sec. 2. "Airport authority" refers to an airport authority established under IC 8-22-3 in a county having a population of more than four hundred thousand (400,000) and less than seven hundred thousand (700,000).

As added by P.L.214-2005, SEC.73. Amended by P.L.11-2023, SEC.124.

IC 36-7.5-1-3"Airport authority project" Sec. 3. "Airport authority project" means a project that can be financed with the proceeds of bonds issued by an airport authority under IC 8-22-3.

As added by P.L.214-2005, SEC.73.

IC 36-7.5-1-4"Airport development authority" Sec. 4. "Airport development authority" refers to an airport development authority established under IC 8-22-3.7 in the city of Gary.

As added by P.L.214-2005, SEC.73. Amended by P.L.119-2012, SEC.214; P.L.104-2022, SEC.196.

IC 36-7.5-1-5"Bonds" Sec. 5. "Bonds" means bonds, notes, or other evidences of indebtedness issued by the development authority.

As added by P.L.214-2005, SEC.73.

IC 36-7.5-1-6"Commuter transportation district" Sec. 6. "Commuter transportation district" refers to a commuter transportation district that:

(1) is established under IC 8-5-15; and

(2) has among its purposes the maintenance, operation, and improvement of passenger service over the Chicago, South Shore, and South Bend Railroad and any extension of that railroad.

As added by P.L.214-2005, SEC.73.

IC 36-7.5-1-7"Commuter transportation district project" Sec. 7. "Commuter transportation district project" means a project that can be financed with the proceeds of bonds issued by a commuter transportation district under IC 8-5-15.

As added by P.L.214-2005, SEC.73.

IC 36-7.5-1-8"Development authority" Sec. 8. "Development authority" refers to the northwest Indiana regional development authority established by IC 36-7.5-2-1.

As added by P.L.214-2005, SEC.73.

IC 36-7.5-1-9"Development board" Sec. 9. "Development board" refers to the governing body appointed under IC 36-7.5-2-3 for a development authority.

As added by P.L.214-2005, SEC.73.

IC 36-7.5-1-10"Economic development project" Sec. 10. "Economic development project" means the following:

(1) An economic development project described in any of the following:

(A) IC 36-7.5-2-1(2), IC 36-7.5-2-1(3), or IC 36-7.5-2-1(4).

(B) IC 36-7.5-3-1(2) or IC 36-7.5-3-1(4).

(2) A dredging, sediment removal, or channel improvement project.

As added by P.L.214-2005, SEC.73. Amended by P.L.192-2015, SEC.7; P.L.204-2016, SEC.36.

IC 36-7.5-1-11"Eligible county" Sec. 11. "Eligible county" refers to the following counties:

(1) Lake County.

(2) Porter County.

(3) LaPorte County, if:

(A) the fiscal body of the county has adopted an ordinance under IC 36-7.5-2-3(d) providing that the county is joining the development authority; and

(B) the fiscal body of the city described in IC 36-7.5-2-3(d) has adopted an ordinance under IC 36-7.5-2-3(d) providing that the city is joining the development authority.

As added by P.L.214-2005, SEC.73. Amended by P.L.47-2006, SEC.49; P.L.119-2012, SEC.215; P.L.165-2021, SEC.207; P.L.104-2022, SEC.197.

IC 36-7.5-1-11.3"Eligible municipality" Sec. 11.3. "Eligible municipality" refers to a municipality that has become a member of the development authority under IC 36-7.5-2-3(h).

As added by P.L.182-2009(ss), SEC.421. Amended by P.L.165-2021, SEC.208.

IC 36-7.5-1-12"Eligible political subdivision" Sec. 12. "Eligible political subdivision" means the following:

(1) An airport authority.

(2) A commuter transportation district.

(3) A regional bus authority under IC 36-9-3-2(c).

(4) A regional transportation authority established under IC 36-9-3-2.

As added by P.L.214-2005, SEC.73. Amended by P.L.47-2006, SEC.50; P.L.197-2011, SEC.146; P.L.114-2022, SEC.32.

IC 36-7.5-1-12.4RepealedAs added by P.L.197-2011, SEC.147. Repealed by P.L.114-2022, SEC.33.

IC 36-7.5-1-12.5RepealedAs added by P.L.197-2011, SEC.148. Repealed by P.L.114-2022, SEC.34.

IC 36-7.5-1-12.7"Marquette plan" Sec. 12.7. "Marquette Plan" refers to the proposal for lakeshore reinvestment prepared for the northwest Indiana regional planning commission in February 2008.

As added by P.L.192-2015, SEC.8.

IC 36-7.5-1-13"Project" Sec. 13. "Project" means an airport authority project, a commuter transportation district project, an economic development project, a regional bus authority project, or a regional transportation authority project.

As added by P.L.214-2005, SEC.73. Amended by P.L.47-2006, SEC.51; P.L.197-2011, SEC.149; P.L.114-2022, SEC.35.

IC 36-7.5-1-13.5"Rail project" Sec. 13.5. "Rail project" refers to the following:

(1) The mainline double tracking project.

(2) The West Lake corridor project.

As added by P.L.229-2017, SEC.36.

IC 36-7.5-1-14"Regional bus authority" Sec. 14. "Regional bus authority" means a regional transportation authority operating as a regional bus authority under IC 36-9-3-2(c).

As added by P.L.214-2005, SEC.73.

IC 36-7.5-1-15"Regional bus authority project" Sec. 15. "Regional bus authority project" means a project that can be financed with the proceeds of bonds issued by a regional bus authority under IC 36-9-3.

As added by P.L.214-2005, SEC.73.

IC 36-7.5-1-15.3"Regional transportation authority" Sec. 15.3. "Regional transportation authority" means a regional transportation authority established under IC 36-9-3-2.

As added by P.L.47-2006, SEC.52.

IC 36-7.5-1-15.6"Regional transportation authority project" Sec. 15.6. "Regional transportation authority project" means a project that can be financed with the proceeds of bonds issued by a regional transportation authority under IC 36-9-3.

As added by P.L.47-2006, SEC.53.

IC 36-7.5-1-16RepealedAs added by P.L.214-2005, SEC.73. Repealed by P.L.197-2011, SEC.153.

IC 36-7.5-1-17RepealedAs added by P.L.214-2005, SEC.73. Repealed by P.L.197-2011, SEC.153.

IC 36-7.5-2Chapter 2. Development Authority and Board

36-7.5-2-1Establishment; purposes 36-7.5-2-2Power in eligible counties and eligible municipalities 36-7.5-2-3Development board; members 36-7.5-2-4Development board; terms of members; vacancy; oath; compensation 36-7.5-2-5Chair; officers 36-7.5-2-6Meetings; quorum; affirmative votes; proxies prohibited 36-7.5-2-7Bylaws and rules 36-7.5-2-8Public purchasing and public works project laws apply; alternatives; commuter transportation district exercise of development authority's powers and duties 36-7.5-2-9Annual financial audit

IC 36-7.5-2-1Establishment; purposes Sec. 1. The northwest Indiana regional development authority is established as a separate body corporate and politic to carry out the purposes of this article by:

(1) acquiring, constructing, equipping, owning, leasing, and financing projects and facilities for lease to or for the benefit of eligible political subdivisions under this article in accordance with IC 36-7.5-3-1.5;

(2) funding and developing the Gary/Chicago International Airport expansion and other airport authority projects, commuter transportation district and other rail projects and services, regional bus authority projects and services, regional transportation authority projects and services, and economic development projects in northwestern Indiana;

(3) assisting with the funding of infrastructure needed to sustain development of an intermodal facility in northwestern Indiana;

(4) funding and developing regional transportation infrastructure projects under IC 36-9-43; and

(5) studying and evaluating destination based economic development projects that have:

(A) an identified market;

(B) identified funding sources and these funding sources include at least fifty percent (50%) from nongovernmental sources; and

(C) a demonstrable short and long term local and regional economic impact, as verified by an independent economic analysis.

An economic analysis conducted under clause (C) must be submitted to the budget committee at least thirty (30) days before review is sought for the project under IC 36-7.5-3-1.5.

As added by P.L.214-2005, SEC.73. Amended by P.L.47-2006, SEC.54; P.L.197-2011, SEC.150; P.L.192-2015, SEC.9; P.L.204-2016, SEC.37; P.L.229-2017, SEC.37; P.L.114-2022, SEC.36.

IC 36-7.5-2-2Power in eligible counties and eligible municipalities Sec. 2. The development authority may carry out its powers and duties under this article in the following:

(1) An eligible county.

(2) An eligible municipality.

As added by P.L.214-2005, SEC.73. Amended by P.L.182-2009(ss), SEC.422.

IC 36-7.5-2-3Development board; members Sec. 3. (a) The development authority is governed by the development board appointed under this section.

(b) Except as provided in subsections (d), (e), and (g), the development board is composed of the following ten (10) members:

(1) Two (2) members appointed by the governor. One (1) of the members appointed by the governor under this subdivision shall be designated as chair by the governor. One (1) of the members appointed by the governor must reside in Porter County. Both members appointed by the governor under this subdivision serve at the pleasure of the governor.

(2) The following members from Lake County:

(A) One (1) member appointed by the mayor of the largest city in the county in which a riverboat is located. The member appointed under this clause must be a resident of the largest city in the county in which a riverboat is located.

(B) One (1) member appointed by the mayor of the second largest city in the county in which a riverboat is located. The member appointed under this clause must be a resident of the second largest city in the county in which a riverboat is located.

(C) One (1) member appointed by the mayor of the third largest city in the county in which a riverboat is located. The member appointed under this clause must be a resident of the third largest city in the county in which a riverboat is located.

(D) One (1) member appointed jointly by the county executive and the county fiscal body. A member appointed under this clause may not reside in a city described in clause (A), (B), or (C).

(3) One (1) member appointed jointly by the county executive and county fiscal body of Porter County. The member appointed under this subdivision must be a resident of Porter County.

(4) The following three (3) members appointed under subsection (i):

(A) One (1) member appointed from Lake County.

(B) One (1) member appointed from Porter County.

The members appointed under this subdivision may only vote on matters that pertain strictly to a transit development district established under IC 36-7.5-4.5-17.

(c) A member appointed to the development board must have knowledge and at least five (5) years professional work experience in at least one (1) of the following:

(1) Rail transportation or air transportation.

(2) Regional economic development.

(3) Business or finance.

(d) LaPorte County is an eligible county participating in the development authority if the fiscal body of the county adopts an ordinance providing that the county is joining the development authority and the fiscal body of the city of Michigan City adopts an ordinance providing that the city is joining the development authority. Notwithstanding subsection (b), if ordinances are adopted under this subsection and the county becomes an eligible county participating in the development authority:

(1) the development board shall be composed of twelve (12) members rather than ten (10) members; and

(2) the additional two (2) members shall be appointed in the following manner:

(A) One (1) additional member shall be appointed by the governor and shall serve at the pleasure of the governor. The member appointed under this clause must be an individual nominated under subsection (e).

(B) One (1) additional member shall be appointed jointly by the county executive and county fiscal body. The member appointed under this clause must be a resident of LaPorte County.

(e) This subsection applies only if the county described in subsection (d) is an eligible county participating in the development authority. The mayor of the largest city in the county described in subsection (d) shall nominate three (3) residents of the county for appointment to the development board. The governor's initial appointment under subsection (d)(2)(A) must be an individual nominated by the mayor. At the expiration of the member's term, the mayor of the second largest city in the county described in subsection (d) shall nominate three (3) residents of the county for appointment to the development board. The governor's second appointment under subsection (d)(2)(A) must be an individual nominated by the mayor. Thereafter, the authority to nominate the three (3) individuals from among whom the governor shall make an appointment under subsection (d)(2)(A) shall alternate between the mayors of the largest and the second largest city in the county at the expiration of a member's term.

(f) An individual or entity required to make an appointment under subsection (b) must make the initial appointment before September 1, 2005, or the initial nomination before August 15, 2005. If an individual or entity does not make an initial appointment under subsection (b) before September 1, 2005, the governor shall instead make the initial appointment.

(g) Subsection (h) applies only:

(1) to municipalities located in Porter County; and

(2) if Porter County was a member of the development authority on January 1, 2009, and subsequently ceases to be a member of the development authority.

(h) If the fiscal bodies of at least two (2) municipalities subject to this subsection adopt ordinances to become members of the development authority, those municipalities shall become members of the development authority. If two (2) or more municipalities become members of the development authority under this subsection, the fiscal bodies of the municipalities that become members of the development authority shall jointly appoint one (1) member of the development board who shall serve in place of the member described in subsection (b)(3). A municipality that becomes a member of the development authority under this subsection is considered an eligible municipality for purposes of this article.

(i) The governor shall appoint three (3) members to the development board as follows:

(1) The initial appointment of one (1) member shall be selected out of a list of three (3) nominations from the county executive of Lake County. The nominations shall be transmitted to the governor before July 1, 2020. If the county executive of Lake County does not make the initial nominations by July 1, 2020, the governor shall instead make the initial appointment. After the expiration of the term of a member appointed under this subdivision, or if a vacancy occurs before the end of the term of a member appointed under this subdivision, the county executive of Lake County shall transmit a list of three (3) nominations to the governor not later than ninety (90) days after the expiration or the vacancy occurs. The governor shall appoint one (1) member out of the list of three (3) nominations, or, if the county executive of Lake County does not make the nominations within ninety (90) days after the expiration or the vacancy occurs, the governor shall instead make the appointment. A member appointed under this subdivision must be a resident of Lake County.

(2) The initial appointment of one (1) member shall be selected out of a list of three (3) nominations from the county executive of Porter County. The nominations shall be transmitted to the governor before July 1, 2020. If the county executive of Porter County does not make the initial nominations by July 1, 2020, the governor shall instead make the initial appointment. After the expiration of the term of a member appointed under this subdivision, or if a vacancy occurs before the end of the term of a member appointed under this subdivision, the county executive of Porter County shall transmit a list of three (3) nominations to the governor not later than ninety (90) days after the expiration or the vacancy occurs. The governor shall appoint one (1) member out of the list of three (3) nominations, or, if the county executive of Porter County does not make the nominations within ninety (90) days after the expiration or the vacancy occurs, the governor shall instead make the appointment. A member appointed under this subdivision must be a resident of Porter County.

(3) The initial appointment of one (1) member shall be selected out of a list of three (3) nominations from the county executive of LaPorte County. The nominations shall be transmitted to the governor before July 1, 2020. If the county executive of LaPorte County does not make the initial nominations by July 1, 2020, the governor shall instead make the initial appointment. After the expiration of the term of a member appointed under this subdivision, or if a vacancy occurs before the end of the term of a member appointed under this subdivision, the county executive of LaPorte County shall transmit a list of three (3) nominations to the governor not later than ninety (90) days after the expiration or the vacancy occurs. The governor shall appoint one (1) member out of the list of three (3) nominations, or, if the county executive of LaPorte County does not make the nominations within ninety (90) days after the expiration or the vacancy occurs, the governor shall instead make the appointment. A member appointed under this subdivision must be a resident of LaPorte County.

As added by P.L.214-2005, SEC.73. Amended by P.L.47-2006, SEC.55; P.L.1-2007, SEC.241; P.L.182-2009(ss), SEC.423; P.L.119-2012, SEC.216; P.L.248-2017, SEC.4; P.L.144-2020, SEC.1; P.L.165-2021, SEC.209; P.L.9-2022, SEC.81; P.L.104-2022, SEC.198.

IC 36-7.5-2-4Development board; terms of members; vacancy; oath; compensation Sec. 4. (a) A member appointed to the development board serves a four (4) year term. However, a member serves at the pleasure of the appointing authority. A member may be reappointed to subsequent terms.

(b) Subject to section 3(i) of this chapter, if a vacancy occurs on the development board, the appointing authority that made the original appointment shall fill the vacancy by appointing a new member for the remainder of the vacated term.

(c) Each member appointed to the development board, before entering upon the duties of office, must take and subscribe an oath of office under IC 5-4-1, which shall be endorsed upon the certificate of appointment and filed with the records of the development board.

(d) A member appointed to the development board is not entitled to receive any compensation for performance of the member's duties. However, a member is entitled to a per diem from the development authority for the member's participation in development board meetings. The amount of the per diem is equal to the amount of the per diem provided under IC 4-10-11-2.1(b).

As added by P.L.214-2005, SEC.73. Amended by P.L.47-2006, SEC.56; P.L.144-2020, SEC.2; P.L.165-2021, SEC.210.

IC 36-7.5-2-5Chair; officers Sec. 5. (a) One (1) of the members appointed by the governor under section 3(b)(1) of this chapter shall serve as chair of the development board.

(b) In January of each year, the development board shall hold an organizational meeting at which the development board shall elect the following officers from the members of the development board:

(1) A vice chair.

(2) A secretary-treasurer.

(c) Not more than two (2) members from any particular county may serve as an officer described in subsection (a) or elected under subsection (b). The affirmative vote of at least five (5) members of the development board is necessary to elect an officer under subsection (b). However, if the county described in section 3(d) of this chapter is an eligible county participating in the development authority, the affirmative vote of at least six (6) members of the development board is necessary to elect an officer under subsection (b).

(d) An officer elected under subsection (b) serves from the date of the officer's election until the officer's successor is elected and qualified.

As added by P.L.214-2005, SEC.73. Amended by P.L.47-2006, SEC.57; P.L.165-2021, SEC.211.

IC 36-7.5-2-6Meetings; quorum; affirmative votes; proxies prohibited Sec. 6. (a) The development authority is a public agency for purposes of IC 5-14-1.5 and IC 5-14-3. The development board is a governing body for purposes of IC 5-14-1.5.

(b) The development board shall meet at least quarterly.

(d) Five (5) members of the development board constitute a quorum. However, if the county described in section (3)(d) of this chapter is an eligible county participating in the development authority, six (6) members of the development board constitute a quorum.

(e) Except as provided in subsection (h), the affirmative votes of at least five (5) members of the development board are necessary to authorize any action of the development authority. However, if the county described in section 3(d) of this chapter is an eligible county participating in the development authority, the affirmative votes of at least six (6) members of the development board are necessary to authorize any action of the development authority.

(f) Notwithstanding any other provision of this article, the minimum number of affirmative votes required under subsection (e) to take any of the following actions must include the affirmative vote of the member appointed by the governor who serves as chair:

(1) Making loans, loan guarantees, or grants or providing any other funding or financial assistance for projects.

(2) Acquiring or condemning property.

(3) Entering into contracts.

(4) Employing an executive director or any consultants or technical experts.

(5) Issuing bonds or entering into a lease of a project.

(g) A member of the board may not:

(1) designate another individual to attend a board meeting on behalf of the member in the member's absence; or

(2) allow another member of the board to cast a proxy vote on behalf of the member in the member's temporary absence from a meeting.

(h) This subsection only applies to a vote on matters that pertain strictly to a transit development district established under IC 36-7.5-4.5-17 on which the members of the development board appointed under section 3(b)(4) may cast a vote. The affirmative votes of at least six (6) members of the development board, which must include the chair, are necessary to authorize any action of the development authority.

As added by P.L.214-2005, SEC.73. Amended by P.L.47-2006, SEC.58; P.L.192-2015, SEC.10; P.L.144-2020, SEC.3; P.L.165-2021, SEC.212.

IC 36-7.5-2-7Bylaws and rules Sec. 7. The development board may adopt the bylaws and rules that the development board considers necessary for the proper conduct of the development board's duties and the safeguarding of the development authority's funds and property. The development board shall include in its rules a statement that recognizes that a member of the development board is a public servant subject to IC 35-44.1-1-4 concerning conflict of interest.

As added by P.L.214-2005, SEC.73. Amended by P.L.248-2017, SEC.5.

IC 36-7.5-2-8Public purchasing and public works project laws apply; alternatives; commuter transportation district exercise of development authority's powers and duties Sec. 8. (a) Except as provided in subsection (c), the development authority must comply with IC 5-22 (public purchasing), IC 36-1-12 (public work projects), and any applicable federal bidding statutes and regulations. An eligible political subdivision that receives a loan, a grant, or other financial assistance from the development authority or enters into a lease with the development authority must comply with applicable federal, state, and local public purchasing and bidding law and regulations. However, a purchasing agency (as defined in IC 5-22-2-25) of an eligible political subdivision may:

(1) assign or sell a lease for property to the development authority; or

(2) enter into a lease for property with the development authority;

at any price and under any other terms and conditions as may be determined by the eligible political subdivision and the development authority. However, before making an assignment or sale of a lease or entering into a lease under this section that would otherwise be subject to IC 5-22, the eligible political subdivision or its purchasing agent must obtain or cause to be obtained a purchase price for the property to be subject to the lease from the lowest responsible and responsive bidder in accordance with the requirements for the purchase of supplies under IC 5-22.

(b) In addition to the provisions of subsection (a), with respect to projects undertaken by the authority, the authority shall set a goal for participation by minority business enterprises of fifteen percent (15%) and women's business enterprises of five percent (5%), consistent with the goals of delivering the project on time and within the budgeted amount and, insofar as possible, using Indiana businesses for employees, goods, and services. In fulfilling the goal, the authority shall take into account historical precedents in the same market.

(1) IC 5-16;

(2) IC 5-23;

(3) IC 5-30;

(4) IC 5-32; or

(5) any combination of the articles listed in subdivisions (1) through (4) as determined by the development authority as appropriate;

when acquiring, financing, and constructing a public work that is a development project (as defined in IC 36-7.5-4.5-5).

(d) The development authority may:

(1) contract with;

(2) assign to; or

(3) delegate to;

a commuter transportation district to perform any duties and exercise any powers of the development authority under this chapter.

As added by P.L.214-2005, SEC.73. Amended by P.L.252-2015, SEC.48; P.L.189-2018, SEC.167; P.L.10-2019, SEC.136.

IC 36-7.5-2-9Annual financial audit Sec. 9. (a) The state board of accounts shall, pursuant to IC 5-11-1-7 and IC 5-11-1-24, allow the development authority to contract with a certified public accountant for an annual financial audit of the development authority. The certified public accountant may not have a significant financial interest in a project, facility, or service funded by or leased by or to the development authority. The certified public accountant selected by the development authority must be approved by the state examiner and is subject to the direction of the state examiner while performing an annual financial audit under this article.

(b) The certified public accountant shall present an audit report not later than four (4) months after the end of the development authority's fiscal year and shall make recommendations to improve the efficiency of development authority operations. The certified public accountant shall also perform a study and evaluation of internal accounting controls and shall express an opinion on the controls that were in effect during the audit period.

(c) The development authority shall pay the cost of the annual financial audit. In addition, the state board of accounts may at any time conduct an audit of any phase of the operations of the development authority. The development authority shall pay the cost of any audit by the state board of accounts.

As added by P.L.214-2005, SEC.73. Amended by P.L.257-2019, SEC.145.

IC 36-7.5-3Chapter 3. Development Authority Powers and Duties

36-7.5-3-1Duties 36-7.5-3-1.5Expenditure of money to fund economic development projects; requirements; submission of funding proposals to budget committee; exceptions 36-7.5-3-1.7Development authority expenditure of money for rail project 36-7.5-3-2Powers 36-7.5-3-3Reports 36-7.5-3-4Development plan 36-7.5-3-5Grant program for extending the Chicago, South Shore, and South Bend Railway 36-7.5-3-5.4Northwest Indiana plan; goals for employment and retention of employees for work on development projects; reporting requirements 36-7.5-3-6Northwest Indiana regional development authority commuter rail construction fund; establishment; uses

IC 36-7.5-3-1Duties Sec. 1. The development authority shall do the following:

(1) Subject to sections 1.5 and 1.7 of this chapter, assist in the coordination of local efforts concerning projects.

(2) Assist a commuter transportation district, an airport authority, a regional transportation authority, and a regional bus authority in coordinating regional transportation and economic development efforts.

(3) Subject to sections 1.5 and 1.7 of this chapter, fund projects as provided in this article.

(4) Fund bus services (including fixed route services and flexible or demand-responsive services) and projects related to bus services and bus terminals, stations, or facilities.

As added by P.L.214-2005, SEC.73. Amended by P.L.47-2006, SEC.59; P.L.197-2011, SEC.151; P.L.192-2015, SEC.11; P.L.189-2018, SEC.168; P.L.114-2022, SEC.37.

IC 36-7.5-3-1.5Expenditure of money to fund economic development projects; requirements; submission of funding proposals to budget committee; exceptions Sec. 1.5. (a) Except as provided in section 1.7 of this chapter, this section applies to revenue received by the authority to the extent that the revenue has not been pledged or otherwise obligated to pay bonds or leases entered into before July 1, 2015, for a project other than a rail project.

(b) The authority may expend money received under this article to fund economic development projects only to the extent that:

(1) the development board finds that the economic development project is a destination based economic development project evaluated under IC 36-7.5-2-1(4) or is consistent with:

(A) a duty imposed upon the development authority under section 1(2) or 1(4) of this chapter; or

(B) the Marquette Plan; and

(2) funding the project is reviewed by the budget committee under subsection (c).

(c) The development board shall submit to the budget committee for review and comment any proposal to fund an economic development project (including any destination based economic development project) under this article. The budget committee shall review any proposal received under this subsection and may request that the authority appear at a public meeting of the budget committee concerning the funding proposal. This subsection does not apply to a rail project financed under IC 5-1.3.

As added by P.L.192-2015, SEC.12. Amended by P.L.204-2016, SEC.38; P.L.189-2018, SEC.169.

IC 36-7.5-3-1.7Development authority expenditure of money for rail project Sec. 1.7. (a) This section applies to a rail project.

(b) Notwithstanding section 1.5 of this chapter, and except for revenue received by the development authority and pledged or otherwise obligated to pay bonds or leases entered into before July 1, 2015, for a project other than a rail project, the development authority may expend money received under this article to fund a rail project.

As added by P.L.189-2018, SEC.170.

IC 36-7.5-3-2Powers Sec. 2. (a) The development authority may do any of the following:

(1) Finance, improve, construct, reconstruct, renovate, purchase, lease, acquire, and equip land and projects located in an eligible county or eligible municipality.

(2) Lease land or a project to an eligible political subdivision.

(3) Finance and construct additional improvements to projects or other capital improvements owned by the development authority and lease them to or for the benefit of an eligible political subdivision.

(4) Acquire land or all or a portion of one (1) or more projects from an eligible political subdivision by purchase or lease and lease the land or projects back to the eligible political subdivision, with any additional improvements that may be made to the land or projects.

(5) Acquire all or a portion of one (1) or more projects from an eligible political subdivision by purchase or lease to fund or refund indebtedness incurred on account of the projects to enable the eligible political subdivision to make a savings in debt service obligations or lease rental obligations or to obtain relief from covenants that the eligible political subdivision considers to be unduly burdensome.

(6) Make loans, loan guarantees, and grants or provide other financial assistance to or on behalf of the following:

(A) A commuter transportation district.

(B) An airport authority or airport development authority.

(C) A regional bus authority. A loan, loan guarantee, grant, or other financial assistance under this clause may be used by a regional bus authority for acquiring, improving, operating, maintaining, financing, and supporting the following:

(i) Bus services (including fixed route services and flexible or demand-responsive services) that are a component of a public transportation system.

(ii) Bus terminals, stations, or facilities or other regional bus authority projects.

(D) A regional transportation authority.

(E) A member municipality that is eligible to make an appointment to the development board under IC 36-7.5-2-3(b)(2) and that has pledged admissions tax revenue for a bond anticipation note after March 31, 2014, and before June 30, 2015. However, a loan made to such a member municipality before June 30, 2016, under this clause must have a term of not more than ten (10) years, must require annual level debt service payments, and must have a market based interest rate. If a member municipality defaults on the repayment of a loan made under this clause, the development authority shall notify the treasurer of state of the default and the treasurer of state shall:

(i) withhold from any funds held for distribution to the municipality under IC 4-33-12, or IC 4-33-13 an amount sufficient to cure the default; and

(ii) pay that amount to the development authority.

(7) Provide funding to assist a railroad that is providing commuter transportation services in an eligible county or eligible municipality.

(8) Provide funding to assist an airport authority located in an eligible county or eligible municipality in the construction, reconstruction, renovation, purchase, lease, acquisition, and equipping of an airport facility or airport project.

(9) Provide funding to assist in the development of an intermodal facility to facilitate the interchange and movement of freight.

(10) Provide funding for economic development projects in an eligible county or eligible municipality.

(11) Hold, use, lease, rent, purchase, acquire, and dispose of by purchase, exchange, gift, bequest, grant, condemnation, lease, or sublease, on the terms and conditions determined by the development authority, any real or personal property located in an eligible county or eligible municipality.

(12) After giving notice, enter upon any lots or lands for the purpose of surveying or examining them to determine the location of a project.

(13) Make or enter into all contracts and agreements necessary or incidental to the performance of its duties and the execution of its powers under this article.

(14) Sue, be sued, plead, and be impleaded.

(15) Design, order, contract for, and construct, reconstruct, and renovate a project or improvements to a project.

(16) Appoint an executive director and employ appraisers, real estate experts, engineers, architects, surveyors, attorneys, accountants, auditors, clerks, construction managers, and any consultants or employees that are necessary or desired by the development authority in exercising its powers or carrying out its duties under this article.

(17) Accept loans, grants, and other forms of financial assistance from the federal government, the state government, a political subdivision, or any other public or private source.

(18) Use the development authority's funds to match federal grants or make loans, loan guarantees, or grants to carry out the development authority's powers and duties under this article.

(19) Provide funding for regional transportation infrastructure projects under IC 36-9-43.

(20) Except as prohibited by law, take any action necessary to carry out this article.

(b) If the development authority is unable to agree with the owners, lessees, or occupants of any real property selected for the purposes of this article, the development authority may proceed under IC 32-24-1 to procure the condemnation of the property. The development authority may not institute a proceeding until it has adopted a resolution that:

(1) describes the real property sought to be acquired and the purpose for which the real property is to be used;

(2) declares that the public interest and necessity require the acquisition by the development authority of the property involved; and

(3) sets out any other facts that the development authority considers necessary or pertinent.

The resolution is conclusive evidence of the public necessity of the proposed acquisition.

As added by P.L.214-2005, SEC.73. Amended by P.L.47-2006, SEC.60; P.L.182-2009(ss), SEC.424; P.L.197-2011, SEC.152; P.L.204-2016, SEC.39; P.L.229-2017, SEC.38; P.L.114-2022, SEC.38.

IC 36-7.5-3-3Reports Sec. 3. The development authority shall before November 1 of each year issue a report to the legislative council, the budget committee, and the governor concerning the operations and activities of the development authority during the preceding state fiscal year. The report to the legislative council must be in an electronic format under IC 5-14-6.

As added by P.L.214-2005, SEC.73.

IC 36-7.5-3-4Development plan Sec. 4. (a) The development authority shall prepare a comprehensive strategic development plan that includes detailed information concerning the following:

(1) The proposed projects to be undertaken or financed by the development authority.

(2) The following information for each project included under subdivision (1):

(A) Timeline and budget.

(B) The return on investment.

(D) Any projected or expected federal matching funds.

(b) The development authority shall before January 1, 2008, submit the comprehensive strategic development plan for review by the budget committee and approval by the director of the office of management and budget.

As added by P.L.214-2005, SEC.73.

IC 36-7.5-3-5Grant program for extending the Chicago, South Shore, and South Bend Railway Sec. 5. (a) There is established a grant program to provide state matching grants for construction projects extending the Chicago, South Shore, and South Bend Railway.

(b) To participate in the grant program, the development authority must prepare an update to the comprehensive strategic development plan prepared under section 4 of this chapter. The update must include detailed information concerning the following:

(1) The proposed projects to be undertaken by the development authority to extend the Chicago, South Shore, and South Bend Railway using grants made under this section.

(2) The commitments being made by the development authority and political subdivisions in exchange for receiving grants under this section.

(3) The following information for each project included under subdivision (1):

(A) The location of each project.

(B) A timeline and budget, including milestones that the development authority commits to achieving by the time specified.

(D) Any projected or expected federal and local matching funds.

(c) To receive a matching grant under this section, the development authority must adopt an authorizing resolution and submit the updated plan along with a grant application to the Indiana finance authority for approval, after review by the budget committee.

(d) A grant may not be approved under this section unless the Indiana finance authority finds that the development authority can demonstrate an annual return on investment that, within twenty (20) years after the first grant is made for the projects, is at least twice the annualized amount of the grant requested. The return on investment must be measured by the annual amount of incremental state fiscal year increases to state gross retail and use taxes and state income taxes that are projected to be collected as a direct result of the projects, as determined by the Indiana finance authority. Projections to determine the return on investment must be provided in detail by the development authority and shall be evaluated by the office of management and budget.

(e) If projects that will be financed are approved under this section, the Indiana finance authority may, after review by the budget committee, approve a grant, comprised of a series of annual grants that is consistent with the financing requirements for the approved projects. If the Indiana finance authority approves and makes a grant under this section, the general assembly covenants that it will not:

(1) repeal or amend this section in a manner that would adversely affect owners of outstanding bonds, or payment of any lease rentals, secured by grants made under this section; or

(2) in any way impair the rights of owners of bonds of the development authority, or the owners of bonds secured by lease rentals, secured by grants made under this section.

The budget agency shall allot the appropriation for the duration of the grants that are needed to complete the approved projects.

(f) If the Indiana finance authority approves and makes a grant under this section, the development authority shall in July of each year through 2045 submit an annual progress report to the Indiana finance authority.

(g) The following must be deposited each year in the northwest Indiana regional development authority commuter rail construction fund established by section 6 of this chapter:

(1) Money that is granted to the development authority by the state under this section during the year.

(2) Money that is committed by the development authority under this section for the year.

(3) Money that is committed by a political subdivision to economic development purposes under IC 6-3.6-6.

(4) In the case of a political subdivision in Porter County, the money that is committed by the political subdivision to economic development purposes under IC 6-3.6-6 from the local income tax shall be paid from tax revenue that is in excess of the first three million five hundred thousand dollars ($3,500,000) that is required to be transferred under IC 6-3.6-11-6(d)(2). Any remaining tax revenue that:

(A) is in excess of the first three million five hundred thousand dollars ($3,500,000) each year that is required to be transferred under IC 6-3.6-11-6(d)(2); and

(B) is not committed by a political subdivision under this subdivision;

shall be used as required by IC 6-3.6-11-6(d)(3).

As added by P.L.213-2015, SEC.265. Amended by P.L.197-2016, SEC.140; P.L.108-2019, SEC.246.

IC 36-7.5-3-5.4Northwest Indiana plan; goals for employment and retention of employees for work on development projects; reporting requirements Sec. 5.4. (a) For purposes of this section, "northwest Indiana plan" refers to the activities of the Indiana plan for equal employment in its northwest Indiana region.

(b) Subject to subsection (c), the development authority shall set a goal to achieve employment and retention of employees from certain northwest Indiana cities for work on development authority projects. The goal must be to attain, by not later than January 1, 2020, a workforce for each project that consists of at least twenty percent (20%) of employees who are individuals who reside in cities that:

(1) are within the boundaries of the development authority; and

(2) have an unemployment rate that exceeds the state unemployment rate by more than twenty percent (20%).

(1) to development authority investments of state and local funds on capital projects that require construction or demolition; and

(2) unless attainment of the goal is inconsistent with any federal or state law or regulation.

(d) The development authority shall before November 1 of each year issue a report to the legislative council, the budget committee, and the governor concerning the operations and activities of the development authority during the preceding state fiscal year as indicated in section 3 of this chapter. In addition, the development authority shall report on progress toward meeting the goal set forth in subsection (b) for the previous year and report any obstacles to achieving the goal set forth in subsection (b) and the use of the northwest Indiana plan in the report to the legislative council. The report to the legislative council must be in an electronic format under IC 5-14-6.

As added by P.L.192-2015, SEC.13.

IC 36-7.5-3-6Northwest Indiana regional development authority commuter rail construction fund; establishment; uses Sec. 6. (a) As used in this section, "fund" refers to the northwest Indiana regional development authority commuter rail construction fund established by subsection (b).

(b) The northwest Indiana regional development authority commuter rail construction fund is established within the treasury of the development authority as a restricted fund for the purpose of holding money to be used to provide matching grants for projects that:

(1) are related to the extension of the Chicago, South Shore, and South Bend Railway; and

(2) are approved by the development authority under this section.

(1) Appropriations by the general assembly.

(2) Contributions received by the development authority under IC 36-7.5-4-1 and IC 36-7.5-4-2.

(3) Contributions of the local income tax revenue received by the fund in accordance with section 5 of this chapter.

(4) Federal grants.

(5) Gifts.

(d) The development authority shall administer the fund.

(e) Money in the fund that is not needed to satisfy the obligations of the fund may be invested in the manner that other public money may be invested. Interest or other investment returns received on investments of money in the fund becomes part of the fund.

(f) Money in the fund may be disbursed from the fund only for the following purposes:

(1) To pay debt service on bonds issued to fund construction projects extending the Chicago, South Shore, and South Bend Railway.

(2) To provide matching grants in accordance with the requirements of this section.

(3) To pay the expenses of the development authority in administering the fund.

(4) To return money to the entity that contributed the money to correct an error in the contribution amount or because the money is no longer needed for the purpose for which the money was contributed.

As added by P.L.213-2015, SEC.266. Amended by P.L.197-2016, SEC.141.

IC 36-7.5-4Chapter 4. Financing; Issuance of Bonds; Leases

36-7.5-4-1Development authority revenue fund; accounts; use of money in the fund; debt service 36-7.5-4-2Revenue transfers to fund; rail projects 36-7.5-4-2.5Use of revenue to support rail projects and double tracking project; payments of revenue to development authority before certified distributions are made 36-7.5-4-2.5Use of revenue to support rail projects and double tracking project; payments of revenue to development authority before certified distributions are made 36-7.5-4-3Bond issues 36-7.5-4-4Bonding; complete authority 36-7.5-4-5Bonding; security; trust indenture 36-7.5-4-6Bond refunding; leases 36-7.5-4-7Leases; findings 36-7.5-4-8Leases; complete authority 36-7.5-4-9Plans; approval 36-7.5-4-10Agreements; common wall; easements; licenses 36-7.5-4-11Leases or sale of projects or land to authority 36-7.5-4-12Option to purchase property 36-7.5-4-13Tax exemption 36-7.5-4-14Bonds; legal investments 36-7.5-4-15Bonds; contesting validity 36-7.5-4-16Transfers; failure to make; duty of state treasurer or fiscal officer; deduct and transfer payment 36-7.5-4-16Transfers; failure to make; duty of state treasurer or local fiscal officer; deduction of amounts payable; payment to development authority 36-7.5-4-16.5Failure of certain cities or counties to make a transfer; duties of state treasurer; deduction of amounts payable to city or county; payment to development authority 36-7.5-4-17Covenant with holders 36-7.5-4-18Exclusive approval; development authority; financing a rail project 36-7.5-4-19Obligations legalized and validated 36-7.5-4-20Transfer of money 36-7.5-4-21West Lake corridor project; failure to enter into a full funding grant agreement 36-7.5-4-22Lake County; commuter rail extensions and improvements; failure to file proper application for federal funding

IC 36-7.5-4-1Development authority revenue fund; accounts; use of money in the fund; debt service Sec. 1. (a) The development board shall establish and administer a development authority revenue fund.

(b) The development authority revenue fund consists of the following:

(1) Riverboat admissions tax revenue, riverboat wagering tax revenue, or riverboat incentive payments received by a city or county described in IC 36-7.5-2-3(b) and transferred by the county or city to the fund.

(2) Local income tax revenue dedicated to economic development purposes by a county or city and transferred by the county or city to the fund.

(3) Amounts distributed under IC 8-15-2-14.7.

(4) Food and beverage tax revenue deposited in the fund under IC 6-9-36-8.

(5) Funds received from the federal government.

(6) Appropriations to the fund by the general assembly.

(7) Other local revenue appropriated to the fund by a political subdivision.

(8) Amounts transferred to the fund under IC 36-7.5-4.5.

(9) Gifts, donations, and grants to the fund.

(c) The development board shall establish any accounts in the fund that are necessary or appropriate to carry out the powers and duties of the development authority.

(d) The development board shall establish separate accounts for funding that are expressly committed to:

(1) the mainline double tracking project; or

(2) the West Lake corridor project.

(e) A separate fund or account may be established to comply with the requirements of:

(1) a grant received from any federal agency or department;

(2) a grant received from the state;

(3) state appropriations;

(4) gifts, bequests, or donations;

(5) the issuance of obligations;

(6) the execution of leases; or

(7) any other purpose.

(f) Except as otherwise provided by law, agreement with holders of any obligations of the development authority, or subsection (g), all money transferred to the development authority revenue fund under subsection (b)(1), (b)(2), and (b)(4) shall be used only for the payment of or to secure the payment of obligations of an eligible political subdivision under a lease entered into by an eligible political subdivision and the development authority under this chapter. Money not pledged to payment of any existing or future leases or reasonably necessary for the purposes of this article may be returned by the treasurer of the development authority to the respective counties and cities that contributed the money to the development authority.

(g) If the amount of money transferred to the development authority revenue fund under subsection (b)(1), (b)(2), and (b)(4) for deposit in the lease rental account in any one (1) calendar year is greater than an amount equal to:

(1) one and twenty-five hundredths (1.25); multiplied by

(2) the total of the highest annual debt service on any bonds then outstanding to their final maturity date, which have been issued under this article and are not secured by a lease, plus the highest annual lease payments on any leases to their final maturity, which are then in effect under this article;

all or a portion of the excess may instead be deposited in the general account.

(h) Except as otherwise provided by law or agreement with the holders of obligations of the development authority, all other money and revenues of the development authority may be used for any purpose authorized by this article.

(i) The development authority revenue fund shall be administered by the development authority.

(j) Money in the development authority revenue fund shall be used by the development authority to carry out this article and does not revert to any other fund.

(k) This section includes full authority for the creation of any fund or account by the development authority and for an agreement with any person to hold or manage a fund or account.

As added by P.L.214-2005, SEC.73. Amended by P.L.182-2009(ss), SEC.425; P.L.197-2016, SEC.142; P.L.229-2017, SEC.39; P.L.248-2017, SEC.6; P.L.86-2018, SEC.350; P.L.189-2018, SEC.171.

IC 36-7.5-4-2Revenue transfers to fund; rail projects Sec. 2. (a) Except as provided in subsections (b) and (d), the fiscal officer of each city and county described in IC 36-7.5-2-3(b) shall each transfer three million five hundred thousand dollars ($3,500,000) each year to the development authority for deposit in the development authority revenue fund established under section 1 of this chapter. However, if Porter County ceases to be a member of the development authority and two (2) or more municipalities in the county have become members of the development authority as authorized by IC 36-7.5-2-3(h), the transfer of the local income tax revenue that is dedicated to economic development purposes that is required to be transferred under IC 6-3.6-11-6 is the contribution of the municipalities in the county that have become members of the development authority.

(b) This subsection applies only if:

(1) the fiscal body of the county described in IC 36-7.5-2-3(d) has adopted an ordinance under IC 36-7.5-2-3(d) providing that the county is joining the development authority;

(2) the fiscal body of the city described in IC 36-7.5-2-3(d) has adopted an ordinance under IC 36-7.5-2-3(d) providing that the city is joining the development authority; and

(3) the county described in IC 36-7.5-2-3(d) is an eligible county participating in the development authority.

The fiscal officer of the county described in IC 36-7.5-2-3(d) shall transfer two million six hundred twenty-five thousand dollars ($2,625,000) each year to the development authority for deposit in the development authority revenue fund established under section 1 of this chapter. The fiscal officer of the city described in IC 36-7.5-2-3(d) shall transfer eight hundred seventy-five thousand dollars ($875,000) each year to the development authority for deposit in the development authority revenue fund established under section 1 of this chapter.

(c) This subsection does not apply to Lake County, Hammond, Gary, or East Chicago. The following apply to the remaining transfers required by subsections (a) and (b):

(1) Except for transfers of money described in subdivision (4)(D), the transfers shall be made without appropriation by the city or county fiscal body or approval by any other entity.

(2) Except as provided in subdivision (3), each fiscal officer shall transfer eight hundred seventy-five thousand dollars ($875,000) to the development authority revenue fund before the last business day of January, April, July, and October of each year. Food and beverage tax revenue deposited in the fund under IC 6-9-36-8 is in addition to the transfers required by this section.

(3) The fiscal officer of the county described in IC 36-7.5-2-3(d) shall transfer six hundred fifty-six thousand two hundred fifty dollars ($656,250) to the development authority revenue fund before the last business day of January, April, July, and October of each year. The county is not required to make any payments or transfers to the development authority covering any time before January 1, 2017. The fiscal officer of a city described in IC 36-7.5-2-3(d) shall transfer two hundred eighteen thousand seven hundred fifty dollars ($218,750) to the development authority revenue fund before the last business day of January, April, July, and October of each year. The city is not required to make any payments or transfers to the development authority covering any time before January 1, 2017.

(4) The transfers shall be made from one (1) or more of the following:

(A) Riverboat admissions tax revenue received by the city or county, riverboat wagering tax revenue received by the city or county, or riverboat incentive payments received from a riverboat licensee by the city or county.

(B) Any local income tax revenue that is dedicated to economic development purposes under IC 6-3.6-6 and received under IC 6-3.6-9 by the city or county.

(D) In the case of a county described in IC 36-7.5-2-3(d) or a city described in IC 36-7.5-2-3(d), any money from the major moves construction fund that is distributed to the county or city under IC 8-14-16.

(d) This subsection applies only to Lake County, Hammond, Gary, and East Chicago. The obligations of each city and the county under subsection (a) are satisfied by the distributions made by the state comptroller on behalf of each unit under IC 4-33-12-8 and IC 4-33-13-5(i). However, if the total amount distributed under IC 4-33 on behalf of a unit with respect to a particular state fiscal year is less than the amount required by subsection (a), the fiscal officer of the unit shall transfer the amount of the shortfall to the authority from any source of revenue available to the unit other than property taxes. The state comptroller shall certify the amount of any shortfall to the fiscal officer of the unit after making the distribution required by IC 4-33-13-5(i) on behalf of the unit with respect to a particular state fiscal year.

(e) A transfer made on behalf of a county, city, or town under this section after December 31, 2018:

(1) is considered to be a payment for services provided to residents by a rail project as those services are rendered; and

(2) does not impair any pledge of revenues under this article because a pledge by the development authority of transferred revenue under this section to the payment of bonds, leases, or obligations under this article or IC 5-1.3:

(A) constitutes the obligations of the northwest Indiana regional development authority; and

(B) does not constitute an indebtedness of a county, city, or town described in this section or of the state within the meaning or application of any constitutional or statutory provision or limitation.

(f) Neither the transfer of revenue as provided in this section nor the pledge of revenue transferred under this section is an impairment of contract within the meaning or application of any constitutional provision or limitation because of the following:

(1) The statutes governing local taxes, including the transferred revenue, have been the subject of legislation annually since 1973, and during that time the statutes have been revised, amended, expanded, limited, and recodified dozens of times.

(2) Owners of bonds, leases, or other obligations to which local tax revenues have been pledged recognize that the regulation of local taxes has been extensive and consistent.

(3) All bonds, leases, or other obligations, due to their essential contractual nature, are subject to relevant state and federal law that is enacted after the date of a contract.

(4) The state of Indiana has a legitimate interest in assisting the development authority in financing rail projects.

(g) All proceedings had and actions described in this section are valid pledges under IC 5-1-14-4 as of the date of those proceedings or actions and are hereby legalized and declared valid if taken before March 15, 2018.

As added by P.L.214-2005, SEC.73. Amended by P.L.47-2006, SEC.61; P.L.182-2009(ss), SEC.426; P.L.119-2012, SEC.217; P.L.192-2015, SEC.14; P.L.197-2016, SEC.143; P.L.248-2017, SEC.7; P.L.189-2018, SEC.172; P.L.10-2019, SEC.137; P.L.108-2019, SEC.247; P.L.293-2019, SEC.48; P.L.156-2020, SEC.145; P.L.165-2021, SEC.213; P.L.104-2022, SEC.199; P.L.9-2024, SEC.557.

IC 36-7.5-4-2.5Use of revenue to support rail projects and double tracking project; payments of revenue to development authority before certified distributions are made Note: This version of section effective until 7-1-2028. See also following version of this section, effective 7-1-2028.

Sec. 2.5. (a) This section applies to a unit that has previously:

(1) entered into an interlocal cooperation or other similar agreement;

(2) adopted an ordinance or resolution; or

(3) taken any other action offering to support and finance:

(A) a rail project or rail projects under this chapter; or

(B) the double tracking project under IC 36-7.5-4.5.

(b) The unit may use any legally available revenue to support and finance the projects described in subsection (a)(3), including additional revenue allocated each year for economic development under IC 6-3.6-6-9.

(c) Additional revenue allocated for economic development to support and finance the projects under this section shall be paid by the treasurer of state to the treasurer of the northwest Indiana regional development authority under section 2 of this chapter before certified distributions are made to the county or any civil taxing unit in the county or counties in which the unit is located.

(d) A transfer made on behalf of a unit under subsection (c) after December 31, 2018, is considered to be a payment for services provided to residents by a rail project as those services are rendered.

(e) A pledge by the development authority of transferred revenue under this section to the payment of bonds, leases, or obligations under this article or IC 5-1.3:

(1) constitutes the obligations of the northwest Indiana regional development authority; and

(2) does not constitute an indebtedness of:

(A) a unit described in this section; or

(B) the state;

within the meaning or application of any constitutional or statutory provision or limitation.

(f) Neither the transfer of revenue nor the pledge of revenue transferred under this section is an impairment of contract within the meaning or application of any constitutional provision or limitation because of the following:

(1) The statutes governing local income taxes, including the transferred revenue, have been the subject of legislation annually since 1973, and during that time the statutes have been revised, amended, expanded, limited, and recodified dozens of times.

(2) Owners of bonds, leases, or other obligations to which local income tax revenues have been pledged recognize that the regulation of local income taxes has been extensive and consistent.

(3) All bonds, leases, or other obligations, due to their essential contractual nature, are subject to relevant state and federal law that is enacted after the date of a contract.

(4) The state of Indiana has a legitimate interest in assisting the northwest Indiana regional development authority in financing rail projects.

As added by P.L.189-2018, SEC.173.

IC 36-7.5-4-2.5Use of revenue to support rail projects and double tracking project; payments of revenue to development authority before certified distributions are made Revisor's Note: The effective date of this section, as amended by P.L.68-2025, was amended by P.L.157-2026, SEC.290 to 7-1-2028.

Note: This version of section effective 7-1-2028. See also preceding version of this section, effective until 7-1-2028.

Sec. 2.5. (a) This section applies to a unit that has previously:

(1) entered into an interlocal cooperation or other similar agreement;

(2) adopted an ordinance or resolution; or

(3) taken any other action offering to support and finance:

(A) a rail project or rail projects under this chapter; or

(B) the double tracking project under IC 36-7.5-4.5.

(b) The unit may use any legally available revenue to support and finance the projects described in subsection (a)(3), including general purpose revenue allocated each year for economic development under IC 6-3.6-6.

(e) A pledge by the development authority of transferred revenue under this section to the payment of bonds, leases, or obligations under this article or IC 5-1.3:

(1) constitutes the obligations of the northwest Indiana regional development authority; and

(2) does not constitute an indebtedness of:

(A) a unit described in this section; or

(B) the state;

within the meaning or application of any constitutional or statutory provision or limitation.

(2) Owners of bonds, leases, or other obligations to which local income tax revenues have been pledged recognize that the regulation of local income taxes has been extensive and consistent.

(3) All bonds, leases, or other obligations, due to their essential contractual nature, are subject to relevant state and federal law that is enacted after the date of a contract.

(4) The state of Indiana has a legitimate interest in assisting the northwest Indiana regional development authority in financing rail projects.

As added by P.L.189-2018, SEC.173. Amended by P.L.68-2025, SEC.239.

IC 36-7.5-4-3Bond issues Sec. 3. (a) The development authority may issue bonds for the purpose of obtaining money to pay the cost of:

(1) acquiring real or personal property, including existing capital improvements;

(2) acquiring, constructing, improving, reconstructing, or renovating one (1) or more projects; or

(3) funding or refunding bonds issued under this chapter or IC 8-5-15, IC 8-22-3, or IC 36-9-3 or prior law.

(b) The bonds are payable solely from:

(1) the lease rentals from the lease of the projects for which the bonds were issued, insurance proceeds, and any other funds pledged or available; and

(2) except as otherwise provided by law, revenue received by the development authority and amounts deposited in the development authority revenue fund.

(d) The terms and form of the bonds shall either be set out in the resolution or in a form of trust indenture approved by the resolution.

(e) The bonds shall mature within forty (40) years.

(f) The board shall sell the bonds only to the Indiana finance authority established by IC 5-1.2-3 upon the terms determined by the development board and the Indiana finance authority.

(g) All money received from any bonds issued under this chapter shall be applied solely to the payment of the cost of acquiring, constructing, improving, reconstructing, or renovating one (1) or more projects, or the cost of refunding or refinancing outstanding bonds, for which the bonds are issued. The cost may include:

(1) planning and development of equipment or a facility and all buildings, facilities, structures, equipment, and improvements related to the facility;

(2) acquisition of a site and clearing and preparing the site for construction;

(3) equipment, facilities, structures, and improvements that are necessary or desirable to make the project suitable for use and operations;

(4) architectural, engineering, consultant, and attorney's fees;

(5) incidental expenses in connection with the issuance and sale of bonds;

(6) reserves for principal and interest;

(7) interest during construction;

(8) financial advisory fees;

(9) insurance during construction;

(10) municipal bond insurance, debt service reserve insurance, letters of credit, or other credit enhancement; and

(11) in the case of refunding or refinancing, payment of the principal of, redemption premiums (if any) for, and interest on, the bonds being refunded or refinanced.

As added by P.L.214-2005, SEC.73. Amended by P.L.1-2006, SEC.573; P.L.252-2015, SEC.49; P.L.189-2018, SEC.174.

IC 36-7.5-4-4Bonding; complete authority Sec. 4. This chapter contains full and complete authority for the issuance of bonds. No law, procedure, proceedings, publications, notices, consents, approvals, orders, or acts by the development board or any other officer, department, agency, or instrumentality of the state or of any political subdivision is required to issue any bonds, except as prescribed in this article.

As added by P.L.214-2005, SEC.73.

IC 36-7.5-4-5Bonding; security; trust indenture Sec. 5. (a) The development authority may secure bonds issued under this chapter by a trust indenture between the development authority and a corporate trustee, which may be any trust company or national or state bank within Indiana that has trust powers.

(b) The trust indenture may:

(1) pledge or assign revenue received by the development authority, amounts deposited in the development authority revenue fund, and lease rentals, receipts, and income from leased projects, but may not mortgage land or projects;

(2) contain reasonable and proper provisions for protecting and enforcing the rights and remedies of the bondholders, including covenants setting forth the duties of the development authority and development board;

(3) set forth the rights and remedies of bondholders and trustees; and

(4) restrict the individual right of action of bondholders.

(c) Any pledge or assignment made by the development authority under this section is valid and binding in accordance with IC 5-1-14-4 from the time that the pledge or assignment is made, against all persons whether they have notice of the lien or not. Any trust indenture by which a pledge is created or an assignment made need not be filed or recorded. The lien is perfected against third parties in accordance with IC 5-1-14-4.

As added by P.L.214-2005, SEC.73. Amended by P.L.189-2018, SEC.175.

IC 36-7.5-4-6Bond refunding; leases Sec. 6. (a) Bonds issued under IC 8-5-15, IC 8-22-3, or IC 36-9-3 or prior law may be refunded as provided in this section.

(b) An eligible political subdivision may:

(1) lease all or a portion of land or a project or projects to the development authority, which may be at a nominal lease rental with a lease back to the eligible political subdivision, conditioned upon the development authority assuming bonds issued under IC 8-5-15, IC 8-22-3, or IC 36-9-3 or prior law and issuing its bonds to refund those bonds; and

(2) sell all or a portion of land or a project or projects to the development authority for a price sufficient to provide for the refunding of those bonds and lease back the land or project or projects from the development authority.

As added by P.L.214-2005, SEC.73. Amended by P.L.114-2022, SEC.39.

IC 36-7.5-4-7Leases; findings Sec. 7. (a) Before a lease may be entered into by an eligible political subdivision under this chapter, the eligible political subdivision must find that the lease rental provided for is fair and reasonable.

(b) A lease of land or a project from the development authority to an eligible political subdivision:

(1) may not have a term exceeding forty (40) years;

(2) may not require payment of lease rentals for a newly constructed project or for improvements to an existing project until the project or improvements to the project have been completed and are ready for occupancy or use;

(3) may contain provisions:

(A) allowing the eligible political subdivision to continue to operate an existing project until completion of the acquisition, improvements, reconstruction, or renovation of that project or any other project; and

(B) requiring payment of lease rentals for land, for an existing project being used, reconstructed, or renovated, or for any other existing project;

(4) may contain an option to renew the lease for the same or shorter term on the conditions provided in the lease;

(5) must contain an option for the eligible political subdivision to purchase the project upon the terms stated in the lease during the term of the lease for a price equal to the amount required to pay all indebtedness incurred on account of the project, including indebtedness incurred for the refunding of that indebtedness;

(6) may be entered into before acquisition or construction of a project;

(7) may provide that the eligible political subdivision shall agree to:

(A) pay any taxes and assessments on the project;

(B) maintain insurance on the project for the benefit of the development authority;

(D) pay a deposit or series of deposits to the development authority from any funds legally available to the eligible political subdivision before the commencement of the lease to secure the performance of the eligible political subdivision's obligations under the lease; and

(8) shall provide that the lease rental payments by the eligible political subdivision shall be made from the development authority revenue fund established by section 1 of this chapter and may provide that the lease rental payments by the eligible political subdivision shall be made from:

(A) net revenues of the project;

(B) any other funds available to the eligible political subdivision; or

As added by P.L.214-2005, SEC.73. Amended by P.L.189-2018, SEC.176.

IC 36-7.5-4-8Leases; complete authority Sec. 8. This chapter contains full and complete authority for leases between the development authority and an eligible political subdivision. No law, procedure, proceedings, publications, notices, consents, approvals, orders, or acts by the development authority or the eligible political subdivision or any other officer, department, agency, or instrumentality of the state or any political subdivision is required to enter into any lease, except as prescribed in this article.

As added by P.L.214-2005, SEC.73.

IC 36-7.5-4-9Plans; approval Sec. 9. If the lease provides for a project or improvements to a project to be constructed by the development authority, the plans and specifications shall be submitted to and approved by all agencies designated by law to pass on plans and specifications for public buildings.

As added by P.L.214-2005, SEC.73.

IC 36-7.5-4-10Agreements; common wall; easements; licenses Sec. 10. The development authority and an eligible political subdivision may enter into common wall (party wall) agreements or other agreements concerning easements or licenses. These agreements shall be recorded with the recorder of the county in which the project is located.

As added by P.L.214-2005, SEC.73.

IC 36-7.5-4-11Leases or sale of projects or land to authority Sec. 11. (a) An eligible political subdivision may lease for a nominal lease rental, or sell to the development authority, one (1) or more projects or portions of a project or land upon which a project is located or is to be constructed.

(b) Any lease of all or a portion of a project by an eligible political subdivision to the development authority must be for a term equal to the term of the lease of that project back to the eligible political subdivision.

(c) An eligible political subdivision may sell property to the development authority for the amount the eligible political subdivision determines to be in the best interest of the eligible political subdivision. The development authority may pay that amount from the proceeds of bonds of the development authority.

As added by P.L.214-2005, SEC.73.

IC 36-7.5-4-12Option to purchase property Sec. 12. If an eligible political subdivision exercises its option to purchase leased property, the eligible political subdivision may issue its bonds as authorized by statute.

As added by P.L.214-2005, SEC.73.

IC 36-7.5-4-13Tax exemption Sec. 13. (a) All:

(1) property owned by the development authority;

(2) revenues of the development authority; and

(3) bonds issued by the development authority, the interest on the bonds, the proceeds received by a holder from the sale of bonds to the extent of the holder's cost of acquisition, proceeds received upon redemption before maturity, proceeds received at maturity, and the receipt of interest in proceeds;

are exempt from taxation in Indiana for all purposes except the financial institutions tax imposed under IC 6-5.5.

(b) All securities issued under this chapter are exempt from the registration requirements of IC 23-19 and other securities registration statutes.

As added by P.L.214-2005, SEC.73. Amended by P.L.27-2007, SEC.35; P.L.79-2017, SEC.84.

IC 36-7.5-4-14Bonds; legal investments Sec. 14. Bonds issued under this chapter are legal investments for private trust funds and the funds of banks, trust companies, insurance companies, building and loan associates, credit unions, savings banks, private banks, loan and trust and safe deposit companies, rural loan and savings associations, guaranty loan and savings associations, mortgage guaranty companies, small loan companies, industrial loan and investment companies, and other financial institutions organized under Indiana law.

As added by P.L.214-2005, SEC.73.

IC 36-7.5-4-15Bonds; contesting validity Sec. 15. An action to contest the validity of bonds to be issued under this chapter may not be brought after the time limitations set forth in IC 5-1-14-13.

As added by P.L.214-2005, SEC.73.

IC 36-7.5-4-16Transfers; failure to make; duty of state treasurer or fiscal officer; deduct and transfer payment Note: This version of section amended by P.L.229-2017, SEC.40. See also following version of this section amended by P.L.248-2017, SEC.8.

Sec. 16. (a) This section applies if a political subdivision or city or county described in IC 36-7.5-2-3 fails to make a transfer or a part of a transfer required by section 2 of this chapter or fails to pay or transfer any amounts a political subdivision or a city or county described in IC 36-7.5-2-3 has agreed to pay or transfer to the development authority pursuant to the terms of any bond, note, debenture, warrant, contractual agreement, or any other promise or agreement.

(b) The development authority shall notify the treasurer of state or the fiscal officer of a city or county described in IC 36-7.5-2-3 when a city, county, or political subdivision has failed to pay or transfer all or part of a payment or transfer due under this section. Upon receiving notice from the development authority, the treasurer of state or fiscal officer shall:

(1) Deduct from amounts otherwise payable to the city or county under IC 4-33-13 or other political subdivision:

(A) an amount equal to the amount of the transfer or part of the transfer under section 2 of this chapter that the city, county, or subdivision failed to make; and

(B) an amount equal to any other amounts due to the development authority that the city, county, or political subdivision failed to make.

(2) Pay the amount deducted under subdivision (1) to the development authority.

(3) Notify the city, county, or political subdivision that the amount that would otherwise be available for distribution to the city, county, or political subdivision has been reduced by an amount necessary to satisfy all or part of the transfers required under section 2 of this chapter or any other amounts due to the development authority.

(1) First, from amounts otherwise payable to the city, county, or other political subdivision under IC 4-33-13.

(2) Second, from local income tax distributions under IC 6-3.6-9 that would otherwise be distributed to the city, county, or other political subdivision under the schedules in IC 6-3.6-9-12 and IC 6-3.6-9-16.

(3) Third, from any other revenues or money otherwise available for distribution from the city, county, or other political subdivision.

As added by P.L.214-2005, SEC.73. Amended by P.L.192-2015, SEC.15; P.L.229-2017, SEC.40.

IC 36-7.5-4-16Transfers; failure to make; duty of state treasurer or local fiscal officer; deduction of amounts payable; payment to development authority Note: This version of section amended by P.L.248-2017, SEC.8. See also preceding version of this section amended by P.L.229-2017, SEC.40.

Sec. 16. (a) This section applies if a political subdivision or city or county described in IC 36-7.5-2-3 or a county participating in a rail project under IC 36-7.5-4.5 fails to make a transfer or a part of a transfer required by section 2 of this chapter or fails to pay or transfer any amounts a political subdivision or a city or county described in IC 36-7.5-2-3 or a county participating in a rail project under IC 36-7.5-4.5 has agreed to pay or transfer to the development authority pursuant to the terms of any bond, note, debenture, warrant, contractual agreement, or any other promise or agreement.

(b) The development authority shall notify the treasurer of state or the fiscal officer of a city, a county described in IC 36-7.5-2-3, or a county participating in a rail project under IC 36-7.5-4.5 when a city, county, or political subdivision has failed to pay or transfer all or part of a payment or transfer due under this section. In the case of a county that is a cash participant county under IC 36-7.5-4.5 that is making payments directly to the Indiana finance authority, the Indiana finance authority shall notify the treasurer of state and the development authority of a default. Upon receiving notice from the development authority or the Indiana finance authority, the treasurer of state or fiscal officer shall:

(1) Deduct from amounts otherwise payable to the city, county, or political subdivision:

(A) an amount equal to the amount of the transfer or part of the transfer under section 2 of this chapter that the city, county, or political subdivision failed to make; and

(B) an amount equal to any other amounts due to the development authority that the city, county, or political subdivision failed to make.

(2) Pay the amount deducted under subdivision (1) to the development authority.

(1) First, from amounts otherwise payable to the city, county, or other political subdivision under IC 4-33-13.

(3) Third, from any other revenues or money otherwise available for distribution from the city, county, or other political subdivision.

As added by P.L.214-2005, SEC.73. Amended by P.L.192-2015, SEC.15; P.L.248-2017, SEC.8.

IC 36-7.5-4-16.5Failure of certain cities or counties to make a transfer; duties of state treasurer; deduction of amounts payable to city or county; payment to development authority Sec. 16.5. (a) This section applies if the development board does the following:

(1) Finds that a city or county described in IC 36-7.5-2-3 has, at any time before July 1, 2015, failed to make a transfer or a part of a transfer required by section 2 of this chapter.

(2) Finds that the obligation of the city or county to pay the unpaid amount of the transfer or transfers has not been satisfied under section 16 of this chapter or by any other means.

(3) Certifies to the treasurer of state the total amount of the arrearage attributable to the failure of the city or county to make a transfer or a part of a transfer required by section 2 of this chapter.

(b) The treasurer of state shall do the following:

(1) Deduct from amounts otherwise payable to the city under IC 4-33-13-5(a) or to the county under IC 4-33-12-6 an amount equal to:

(A) the total amount certified under subsection (a)(3); plus

(B) interest calculated in the same manner that interest on delinquent taxes is calculated under IC 6-8.1-10-1.

(2) Pay the amount deducted under subdivision (1) to the development authority.

As added by P.L.192-2015, SEC.16. Amended by P.L.149-2016, SEC.99.

IC 36-7.5-4-17Covenant with holders Sec. 17. (a) If there are bonds outstanding that have been issued under this article and are not secured by a lease, or if there are leases in effect under this article, the general assembly also covenants that it will not reduce the amount required to be transferred from the counties and cities to the development authority under section 2 of this chapter below an amount that would produce one and twenty-five hundredths (1.25) multiplied by the total of the highest annual debt service on the bonds to their final maturity plus the highest annual lease payments on the leases to their final termination date.

(b) The general assembly also covenants that it will not:

(1) repeal or amend this article in a manner that would adversely affect owners of outstanding bonds, or the payment of lease rentals, secured by the amounts pledged under this chapter; or

(2) in any way impair the rights of owners of bonds of the development authority, or the owners of bonds secured by lease rentals, secured by a pledge of revenues under this chapter;

except as otherwise set forth in subsection (a).

As added by P.L.214-2005, SEC.73.

IC 36-7.5-4-18Exclusive approval; development authority; financing a rail project Sec. 18. Subject to IC 5-1.3, the development authority is the exclusive fiscal officer for and has final approval for financing a transportation project involving a rail project under this article.

As added by P.L.248-2017, SEC.9. Amended by P.L.189-2018, SEC.177.

IC 36-7.5-4-19Obligations legalized and validated Sec. 19. (a) All bonds, notes, evidences of indebtedness, leases, or other written obligations issued or executed by or in the name of the development authority under this chapter before April 30, 2019, are hereby legalized and declared valid.

(b) Any pledge, dedication or designation of revenues securing the bonds, notes, evidences of indebtedness, leases, or other written obligations issued or executed by or in the name of the development authority under this chapter before April 30, 2019, are hereby legalized and declared valid.

(1) financing plan for the West Lake project (as described in IC 36-7.5-1-13.5) submitted to the United States Department of Transportation and the Federal Transit Administration; and

(2) governance agreement between the development authority, the Indiana finance authority, and a commuter transportation district are hereby legalized and declared valid.

(d) Any resolutions adopted, proceedings had, and actions taken under this chapter by the development authority before April 30, 2019, under which the bonds, notes, evidences of indebtedness, leases, or other written obligations were or will be issued or under which the pledge or dedication or designation of revenues was or will be granted, are hereby legalized and declared valid.

As added by P.L.259-2019, SEC.15.

IC 36-7.5-4-20Transfer of money Sec. 20. (a) Before July 1, 2019, the Lake County auditor shall transfer to the secretary-treasurer of the development authority all amounts held in the commuter rail extension and improvement fund established by an ordinance adopted by the fiscal body of Lake County on June 9, 2015.

(b) On or before December 31, 2019, the Lake County auditor shall transfer to the secretary-treasurer of the development authority all amounts received after June 30, 2019, and deposited in the commuter rail extension and improvement fund described in subsection (a).

As added by P.L.259-2019, SEC.16.

IC 36-7.5-4-21West Lake corridor project; failure to enter into a full funding grant agreement Sec. 21. (a) If a full funding grant agreement is not entered into between the commuter transportation district and the federal government for the West Lake corridor project, all amounts received by the secretary-treasurer of the development authority under IC 6-3.6-11-5.5, including any interest earned on those amounts, shall be distributed by the secretary-treasurer of the development authority to each civil taxing unit in proportion to the amounts withheld and paid on behalf of the civil taxing unit under IC 6-3.6-11-5.5.

(b) When a full funding grant agreement is entered into between the commuter transportation district and the federal government for a rail project, the development authority shall adopt a resolution taking notice of the executed full funding grant agreement, and the provisions of subsection (a) will not apply with respect to that rail project.

As added by P.L.259-2019, SEC.17.

IC 36-7.5-4-22Lake County; commuter rail extensions and improvements; failure to file proper application for federal funding Sec. 22. (a) Subject to subsection (b), if, before December 31, 2020, the proper applications for federal funding necessary and desired to complete commuter rail extensions and improvements described in an interlocal agreement entered into by Lake County units to support the extension and improvement of rail services have not been filed, after satisfaction of all obligations and liabilities that have been incurred, all resources on deposit to the credit of an account established by section 1(d) of this chapter must be distributed to each participating unit, entity, and nonentity donor based on the ratio of the contributions of each participating unit, entity, and nonentity donor to the total amount on deposit to the credit of the account.

(b) If the purposes of an interlocal agreement entered into by Lake County units to support the extension and improvement of rail services are achieved or abandoned, after allowing for any encumbrances and other lawful payables, any remaining balance in an account established by section 1(d) of this chapter that is unobligated, unassigned, and unreserved must be distributed to each participating unit, entity, and nonentity donor based on the ratio of the contributions of each participating unit, entity, and nonentity donor to the total amount on deposit to the credit of the account. After making the distributions, the fund must be defeased.

As added by P.L.259-2019, SEC.18.

IC 36-7.5-4.5Chapter 4.5. Rail Transit Development Districts

36-7.5-4.5-0.5"Associate member" 36-7.5-4.5-1"Base assessed value" 36-7.5-4.5-2"Budget agency" 36-7.5-4.5-2.5"Cash participant" 36-7.5-4.5-3"Corridor" 36-7.5-4.5-4"Department" 36-7.5-4.5-5"Development project" 36-7.5-4.5-6"District" 36-7.5-4.5-7"Gross retail tax base period amount" 36-7.5-4.5-8"Gross retail tax increment revenue" 36-7.5-4.5-9"Local income tax base period amount" 36-7.5-4.5-10"Local income tax increment revenue" 36-7.5-4.5-11"Property tax increment revenue" 36-7.5-4.5-12"Rail project" 36-7.5-4.5-13"State income tax base period amount" 36-7.5-4.5-14"State income tax increment revenue" 36-7.5-4.5-15"Rail transit development corridor"; establishment; geographic area 36-7.5-4.5-16County that is not a member of development authority; financially participate in mainline double tracking project as associate member or cash member; rights and duties 36-7.5-4.5-16.5Transfer of funds by a cash participant or associate member; double tracking project; pledge 36-7.5-4.5-17Transit development district; establishment; conditions; geographic area 36-7.5-4.5-18Transit development district located in cash participant county; administration and use of incremental property tax revenue 36-7.5-4.5-19Steering committee; establishment; members; meetings; duties 36-7.5-4.5-20South shore improvement and development fund; administration; account for each transit development district; distributions to the fund; uses 36-7.5-4.5-21Allocation and distribution of incremental property tax revenue in transit development district 36-7.5-4.5-21.5Limitation on renewal or extension of existing allocation area; required conditions 36-7.5-4.5-22Duty to maximize amounts distributed to political subdivisions that would otherwise receive the revenue; public meeting 36-7.5-4.5-23Funding of development projects within a transit development district; uses 36-7.5-4.5-24Development authority; duty to provide information concerning employers and retail merchants in transit development district to department of state revenue 36-7.5-4.5-25Annual reporting requirement for employers operating in a transit development district 36-7.5-4.5-26Annual reporting requirement for retail merchants operating in a transit development district; duty of development authority and political subdivisions to provide information 36-7.5-4.5-27Local income tax increment fund; deposit of local income tax increment revenue in an account within the fund for each transit development district 36-7.5-4.5-28Certification and distributions from transit development district account 36-7.5-4.5-29Expenses; liabilities; obligations 36-7.5-4.5-30Chapter broadly construed 36-7.5-4.5-31Distribution of remaining money upon completion 36-7.5-4.5-32Covenants 36-7.5-4.5-33Expiration

IC 36-7.5-4.5-0.5"Associate member" Sec. 0.5. As used in this chapter, "associate member" refers to a county or municipality that adopted an ordinance or resolution under section 16 of this chapter specifying that the county or municipality has chosen to become an associate member.

As added by P.L.189-2018, SEC.178.

IC 36-7.5-4.5-1"Base assessed value" Sec. 1. As used in this chapter, "base assessed value" means:

(1) the net assessed value of all the taxable property located in a transit development district as finally determined for the assessment date immediately preceding the effective date of the resolution adopted under this chapter establishing the particular district; plus

(2) to the extent it is not included in subdivision (1), the net assessed value of property that is assessed as residential property under the rules of the department of local government finance, as finally determined for any assessment date after the effective date of the resolution.

As added by P.L.248-2017, SEC.10.

IC 36-7.5-4.5-2"Budget agency" Sec. 2. As used in this chapter, "budget agency" means the budget agency established by IC 4-12-1-3.

As added by P.L.248-2017, SEC.10.

IC 36-7.5-4.5-2.5"Cash participant" Sec. 2.5. As used in this chapter, "cash participant" refers to a county or municipality that has adopted an ordinance or resolution under section 16 of this chapter specifying that the county or municipality has chosen to become a cash participant.

As added by P.L.189-2018, SEC.179.

IC 36-7.5-4.5-3"Corridor" Sec. 3. As used in this chapter, "corridor" means the geographic area established as a rail transit development corridor by this chapter.

As added by P.L.248-2017, SEC.10.

IC 36-7.5-4.5-4"Department" Sec. 4. As used in this chapter, "department" refers to the department of state revenue.

As added by P.L.248-2017, SEC.10.

IC 36-7.5-4.5-5"Development project" Sec. 5. As used in this chapter, "development project" includes only development projects that benefit the corridor.

As added by P.L.248-2017, SEC.10.

IC 36-7.5-4.5-6"District" Sec. 6. As used in this chapter, "district" refers to a transit development district established by the development authority under this chapter.

As added by P.L.248-2017, SEC.10.

IC 36-7.5-4.5-7"Gross retail tax base period amount" Sec. 7. As used in this chapter, "gross retail tax base period amount" means the aggregate amount of state gross retail taxes remitted under IC 6-2.5 by retail merchants for the calendar year in which the district was established under this chapter as determined by the department.

As added by P.L.248-2017, SEC.10. Amended by P.L.236-2023, SEC.189.

IC 36-7.5-4.5-8"Gross retail tax increment revenue" Sec. 8. As used in this chapter, "gross retail tax increment revenue" means the remainder of:

(1) the aggregate amount of state gross retail taxes that are remitted under IC 6-2.5 by retail merchants during a calendar year with respect to the retail merchants' operations in the district; minus

(2) the gross retail tax base period amount.

As added by P.L.248-2017, SEC.10.

IC 36-7.5-4.5-9"Local income tax base period amount" Sec. 9. (a) As used in this chapter, "local income tax base period amount" means the total amount of local income tax (IC 6-3.6) paid by:

(1) employees employed within a district with respect to wages and salary earned for work in the district; and

(2) residents living within the district;

for the calendar year in which the district was established under this chapter as determined by the department.

(b) If an individual is a resident of one (1) district and is employed within another district during a calendar year, the local income tax for the individual shall be attributed to the district in which the individual resides.

As added by P.L.248-2017, SEC.10. Amended by P.L.236-2023, SEC.190.

IC 36-7.5-4.5-10"Local income tax increment revenue" Sec. 10. (a) As used in this chapter, "local income tax increment revenue" means the remainder of:

(1) the total amount of local income tax (IC 6-3.6) paid by:

(A) employees employed in the district with respect to wages and salary earned for work in the territory comprising the district for a particular calendar year; and

(B) residents living within the district; minus

(2) the local income tax base period amount;

as determined by the department.

As added by P.L.248-2017, SEC.10. Amended by P.L.236-2023, SEC.191.

IC 36-7.5-4.5-11"Property tax increment revenue" Sec. 11. As used in this chapter, "property tax increment revenue" means the property taxes attributable to the assessed value of property located in a district in excess of the base assessed value.

As added by P.L.248-2017, SEC.10.

IC 36-7.5-4.5-12"Rail project" Sec. 12. As used in this chapter, "rail project" refers to the following:

(1) The mainline double tracking project.

(2) The West Lake corridor project.

As added by P.L.248-2017, SEC.10.

IC 36-7.5-4.5-13"State income tax base period amount" Sec. 13. (a) As used in this chapter, "state income tax base period amount" means the aggregate amount of state adjusted gross income taxes paid or remitted by or on behalf of:

(1) employees employed within a district with respect to wages and salary earned for work in the district; and

(2) residents living within the district;

for the calendar year in which the district was established under this chapter, as determined by the department.

(b) If an individual is a resident of one (1) district and is employed within another district during a calendar year, the state income tax for the individual shall be attributed to the district in which the individual resides.

As added by P.L.248-2017, SEC.10. Amended by P.L.236-2023, SEC.192.

IC 36-7.5-4.5-14"State income tax increment revenue" Sec. 14. (a) As used in this chapter, "state income tax increment revenue" means the remainder of:

(1) the aggregate amount of state adjusted gross income taxes paid or remitted for a calendar year with respect to:

(A) wages and salary earned for work in the territory comprising a district; and

(B) income earned by residents living within the district; minus

(2) the state income tax base period amount.

As added by P.L.248-2017, SEC.10. Amended by P.L.236-2023, SEC.193.

IC 36-7.5-4.5-15"Rail transit development corridor"; establishment; geographic area Sec. 15. There is created a rail transit development corridor that consists of the geographic area that is within five-tenths (0.5) of a mile of the following rail lines that are a part of the Northern Indiana Commuter or South Bend Railway:

(1) The Chicago to South Bend line.

(2) The Hammond to Dyer line, which includes the West Lake corridor project once the preferred alignment has been determined.

The development authority shall transmit to the department a map of the corridor.

As added by P.L.248-2017, SEC.10.

IC 36-7.5-4.5-16County that is not a member of development authority; financially participate in mainline double tracking project as associate member or cash member; rights and duties Sec. 16. (a) A county that is not a member of the development authority, along with municipalities within the county, may financially participate in the mainline double tracking project and receive the same benefits a member would receive under this chapter. To financially participate, a county may become an associate member of the development authority or a cash participant. The county fiscal body must adopt a resolution to make the county a financial participant. The resolution must specify whether the county is choosing to be an associate member of the development authority or a cash participant. If the county chooses to be a cash participant, the resolution must specify whether the county will make a cash payment to the development authority for the county's share of the local part of the state and local cost of the project or will commit to making debt service payments annually for the life of the bonds used to finance the rail project.

(b) The following apply to an associate member county:

(1) The county is not a full member of the development authority.

(2) The executive of the largest municipality in the county may appoint an individual to serve as a nonvoting member on the development authority board.

(3) The county agrees to pay two million five hundred thousand dollars ($2,500,000) annually to the development authority to cover the following expenses:

(A) The county's share of the cost of the rail project under the final financing plan agreed to by the development authority and the Indiana finance authority, estimated to be one million five hundred thousand dollars ($1,500,000) in annual debt service.

(B) A debt service coverage ratio of one hundred thirty-three percent (133%).

(4) The county must pledge revenue for the membership payment from only property tax revenue or local income tax revenue, or both.

(1) The county is not an associate or a full member of the development authority.

(2) The county is not entitled to appoint an individual to serve as a voting or nonvoting member on the development authority board.

(3) The county shall make either a cash payment to the development authority for the county's share of the local portion of the state and local cost of the project or shall commit to making debt service payments annually for the life of the bonds.

(4) If the cash payment option is chosen, within one hundred twenty (120) days after the rail project is approved for federal funding and the final financing plan is agreed to by the development authority and the Indiana finance authority, the county shall pay to the development authority or the Indiana finance authority the amount of the county's share of the rail project's cost, estimated to be eighteen million two hundred fifty thousand dollars ($18,250,000).

(5) If the annual debt service payments for the life of the bonds option is chosen, before December 31 of each year, the county shall pay to the development authority or the Indiana finance authority the amount of the county's annual share of the project's cost under the final financing plan negotiated by the development authority and the Indiana finance authority, estimated to be two million dollars ($2,000,000) annually, to cover the following expenses:

(A) An estimated one million five hundred thousand dollars ($1,500,000) in annual debt service.

(B) A debt service coverage ratio of one hundred thirty-three percent (133%).

The county must pledge revenue for the debt service payment from only property tax revenue or local income tax revenue, or both.

(6) The property tax and local income tax incremental revenues from a district located in a political subdivision shall be distributed by the county auditor to the political subdivision's redevelopment commission.

(7) Money in a fund of a redevelopment commission established by a county or municipality that is not otherwise committed for other purposes may be used to make payments required by this subsection.

(d) The following apply to a county that is an associate member of the development authority or a cash participant county:

(1) The Indiana finance authority shall conduct pre-financing verification of an associate member county or a cash participant county to pay for the rail project.

(2) By becoming an associate member county or a cash participant county, the county agrees to a state intercept provision that will remain in force for the life of the state bonds used to fund the rail project construction.

(3) The amount attributable to any debt service coverage reserve provided by a county shall be returned to the county at the end of the first ten (10) year period less the issuance and administrative costs incurred by the development authority and the Indiana finance authority.

(4) The property tax increment revenue and local income tax increment revenue within a district shall be used by the development authority or redevelopment commission or both, in the case of a district located in an associate member county, only to fund development projects within that district.

(5) Each year, the development authority or the Indiana finance authority shall reconcile the total actual costs of the rail project compared to the total costs of the rail project used to determine a county's payments under this section. To the extent the total actual costs of the rail project are less than the total rail project costs used to determine payment amounts, the development authority or the Indiana finance authority shall distribute twenty-five percent (25%) of the total amount to the county. To the extent the total actual rail project costs are greater than the total rail project costs used to determine payment amounts, the county shall pay to the development authority or the Indiana finance authority twenty-five percent (25%) of the total amount.

(6) The state shall capture state sales tax revenue and state income tax revenue within the district for the duration of the district's existence.

(e) The development authority shall report annually to the budget agency and to all the members and participating counties on the amount of the issuance costs and administrative costs incurred in the preceding year.

As added by P.L.248-2017, SEC.10.

IC 36-7.5-4.5-16.5Transfer of funds by a cash participant or associate member; double tracking project; pledge Sec. 16.5. (a) This section applies to an associate member or cash participant that has committed to:

(1) make a cash payment to the development authority; or

(2) provide revenues to the development authority annually to make debt service payments annually for the life of any:

(A) bonds or obligations issued; or

(B) leases entered into;

by the development authority;

to finance the mainline double tracking project.

(b) A transfer of funds made by a cash participant or an associate member under this section after December 31, 2018, is considered to be a payment for services provided to residents by the mainline double tracking project (as described in section 12 of this chapter) as those services are rendered.

(1) an associate member;

(2) a cash participant; or

(3) the state;

within the meaning or application of any constitutional or statutory provision or limitation.

(d) A pledge by the development authority of transferred revenue under this section to the payment of bonds, leases, or obligations under this article or IC 5-1.3:

(1) constitutes the obligations of the development authority; and

(2) does not constitute an indebtedness of:

(A) an associate member;

(B) a cash participant; or

within the meaning or application of any constitutional or statutory provision or limitation.

(e) Neither the transfer of revenue nor the pledge of revenue transferred under this section is an impairment of contract within the meaning or application of any constitutional provision or limitation because of the following:

(1) The statutes governing local government revenues, including the transferred revenue, have been the subject of legislation annually since 1973, and during that time the statutes have been revised, amended, expanded, limited, and recodified dozens of times.

(2) Owners of bonds, leases, or other obligations to which local government revenues have been pledged recognize that the regulation of government revenues has been extensive and consistent.

(3) All bonds, leases, or other obligations, due to their essential contractual nature, are subject to relevant state and federal law that is enacted after the date of a contract.

(4) The state of Indiana has a legitimate interest in assisting the northwest Indiana regional development authority in financing rail projects, including the mainline double tracking project.

As added by P.L.189-2018, SEC.180. Amended by P.L.10-2019, SEC.138.

IC 36-7.5-4.5-17Transit development district; establishment; conditions; geographic area Sec. 17. (a) The development authority may establish a transit development district and may expand a district. Before establishing a transit development district, the development authority shall consult with the municipality in which the district will be located. To establish or expand a district the development authority must hold at least two (2) public hearings before establishing or expanding the district.

(b) A district must satisfy the following conditions:

(1) Only one (1) district may be established with regard to each train station or regular train stop.

(2) The district must be within a county that is a member or associate member of the development authority or a financially participating county under this chapter.

(3) The initial area of the district must not be more than five-tenths (0.5) of a square mile but the area may be expanded under subsection (d).

(4) The train station or regular train stop, including accompanying parking lots (if applicable), must be located within the area of the district.

(5) All parcels within the district must be contiguous.

The area of a district may include a tax area established under IC 36-7-14 before January 1, 2017.

(c) Notwithstanding subsection (b), a district may be established in a municipality that is located in a county that is a member of the development authority and has operated:

(1) regularly scheduled commuter bus services to Chicago, Illinois, with prior financial assistance from the development authority; and

(2) shuttle bus services that transport riders to:

(A) a train station; or

(B) a regular train stop;

along the Chicago to South Bend line.

(d) The development authority shall adopt a resolution to establish a district. The resolution must include:

(1) the termination date of the district in accordance with subsection (g); and

(2) findings by the development authority specifying that the conditions set forth in subsection (b) or (c) are satisfied.

A district may not be reduced in territory once established or expanded to be more than one (1) square mile. A district's territory may be expanded subject to the other conditions set forth in subsection (b) or (c). A district may be expanded only one (1) time under this chapter. The development authority shall transmit a copy of any resolution establishing or expanding a district to the budget director, who shall distribute it to the members of the budget committee.

(e) The date a district becomes established or an expansion of a district becomes effective may not be earlier than the date the budget committee reviews the establishment or expansion of the district.

(f) The establishment of a district does not provide the development authority with any powers or preempt any authority of a political subdivision having jurisdiction in the district concerning the regulation of property or its uses, including planning and zoning provisions of the political subdivision.

(g) A district terminates at the earlier of:

(1) the end of the year in which all financing obligations entered into under this chapter for a project within the district are satisfied; or

(2) June 30, 2047.

As added by P.L.248-2017, SEC.10. Amended by P.L.210-2023, SEC.1.

IC 36-7.5-4.5-18Transit development district located in cash participant county; administration and use of incremental property tax revenue Sec. 18. If a district is established, the following apply to the administration and use of incremental property tax revenue by the development authority, or a redevelopment commission in the case of a district located in a cash participant county, in the district:

(1) The county auditor shall, on forms prescribed by the department of local government finance, adjust the base assessed value to neutralize any effect of a reassessment and the annual adjustment of the real property in the district in the same manner as provided in IC 36-7-14-39(h). The county auditor shall, in the manner prescribed by the department of local government finance, submit the forms required by this subdivision to the department of local government finance no later than July 15 of each year.

(2) Proceeds of the property taxes approved by the voters in a referendum or local public question shall be allocated to and, when collected, paid into the funds of the taxing unit for which the referendum or local public question was conducted in the same manner as provided in IC 36-7-14-39(b)(3).

(3) Incremental property tax revenue may be used only for one (1) or more of the following purposes for a district:

(A) To finance the improvement, construction, reconstruction, renovation, and acquisition of real and personal property improvements within a district.

(B) To pay the principal of and interest on any obligations that are incurred for the purpose of financing or refinancing development in the district, including local public improvements that are physically located in or physically connected to the district.

(C) To establish, augment, or restore the debt service reserve for bonds payable solely or in part from incremental property tax revenue from the district.

(D) To pay premiums on the redemption before maturity of bonds payable solely or in part from incremental property tax revenue from the district.

(E) To make payments on leases payable from incremental property tax revenue from the district.

(F) To reimburse a municipality in which a district is located for expenditures made by the municipality for local public improvements that are physically located in or physically connected to the district.

(G) To reimburse a municipality for rentals paid by the municipality for a building or parking facility that is physically located in or physically connected to the district under any lease entered into under IC 36-1-10.

(H) To pay expenses incurred by the development authority for local public improvements that are in the district or serving the district.

As added by P.L.248-2017, SEC.10. Amended by P.L.236-2023, SEC.194; P.L.157-2026, SEC.263.

IC 36-7.5-4.5-19Steering committee; establishment; members; meetings; duties Sec. 19. (a) There is established a steering committee to provide information and guidance to the development authority on development within the districts located in a member county.

(b) The steering committee is comprised of one (1) individual appointed by the executive of each municipality located in a member county in which a district could be established. A member of the steering committee serves a one (1) year term that ends December 31 each year. Initial terms end December 31 of the first year of the member's appointment even though the term may be less than one (1) year. A member may serve additional terms. The appointing executive may replace a member at the executive's discretion. A member of the steering committee is a public servant subject to IC 35-44.1-1-4 concerning conflict of interest.

(c) A chairperson of the steering committee shall be selected annually by the members. However, the chairperson may not be a resident of a municipality that has direct appointment to the development authority board.

(d) The steering committee shall meet at least quarterly. The steering committee shall also meet upon the call of the chairperson. At each quarterly meeting:

(1) the development authority shall present a progress report on development within each district to the steering committee; and

(2) the steering committee shall provide the development authority with information and guidance on development within each district.

IC 5-14-1.5 (the open door law) applies to meetings of the steering committee. The steering committee shall publish a notice of its meeting in accordance with IC 5-3-1-2(b). All records of the steering committee are public records subject to public inspection under IC 5-14-3.

As added by P.L.248-2017, SEC.10.

IC 36-7.5-4.5-20South shore improvement and development fund; administration; account for each transit development district; distributions to the fund; uses Sec. 20. (a) If a district is established in a member county, the development authority shall create a south shore improvement and development fund. The development authority shall establish a separate account in the fund for each district. If more than one (1) municipality has territory within the district, a subaccount shall be established for each municipality. The fund shall be administered by the development authority. The development authority shall deposit in the appropriate district account in the fund all amounts received under this chapter from the following:

(1) Distributions of local income tax increment revenue from the state.

(2) Distributions of property tax increment revenue from counties.

(b) If a district is established in a cash participant county, the redevelopment commission having territory in the district shall create a south shore improvement and development fund. The fund shall be administered by the redevelopment commission. The redevelopment commission shall deposit in the fund all amounts received under this chapter from the following:

(1) Distributions of district local income tax increment revenue from the state.

(2) Distributions of district property tax increment revenue from the county auditor.

(c) The local income tax increment revenue and the local property tax increment revenue received by the development authority or redevelopment commission from each district shall be spent by the development authority or redevelopment commission on projects within the district from which the revenue was collected.

As added by P.L.248-2017, SEC.10.

IC 36-7.5-4.5-21Allocation and distribution of incremental property tax revenue in transit development district Sec. 21. (a) If a district is established, the county auditor in each county in which the district is located shall distribute to the development authority, or the redevelopment commission that would otherwise receive the incremental property tax revenues under IC 36-7-14 in the case of a cash participant county, the lesser of:

(1) the property tax increment revenue collected in the district in the amount specified by the development authority or redevelopment commission; or

(2) all the property tax increment revenue collected in the district.

In the case of a district that is established in a cash participant county, the county auditor shall distribute any excess district property tax revenue increment to the political subdivisions that would otherwise receive the revenue under IC 36-7-14 as if the increment were attributable to the base assessed value of the allocation area within the district.

(b) If a district established in a member county includes a tax area established under IC 36-7-14 before January 1, 2017, the development authority and the redevelopment commission receiving property tax revenues under IC 36-7-14 shall use their best efforts to come to an agreement on how much property tax increment revenue will be allocated between the development authority and the redevelopment commission, recognizing that any existing obligations of the redevelopment commission would have priority over any later obligations of the development authority. The county auditor shall distribute to the development authority the amount of property tax increment revenue that is allocated to the development authority.

(c) The development authority shall deposit all property tax increment revenue received in the appropriate district account in the south shore improvement and development fund.

As added by P.L.248-2017, SEC.10.

IC 36-7.5-4.5-21.5Limitation on renewal or extension of existing allocation area; required conditions Sec. 21.5. Notwithstanding any other law, if the Indiana economic development corporation subsequently designates territory that is located in an existing allocation area under this chapter as an innovation development district under IC 36-7-32.5, the allocation area may not be renewed or extended under this chapter until the term of the innovation development district expires.

As added by P.L.123-2024, SEC.22.

IC 36-7.5-4.5-22Duty to maximize amounts distributed to political subdivisions that would otherwise receive the revenue; public meeting Sec. 22. The development authority or redevelopment commission, in the case of a district located in a cash participant county, shall use its best efforts to maximize the amount of local income tax increment revenue and property tax increment revenue that will be distributed to the political subdivisions that would otherwise receive the revenue, taking into consideration the revenue needed by the development authority or the redevelopment commission for debt service, debt service coverage ratio requirements, excess reserve requirements, and anticipated cash needs for the near term. If a district is established in a member county, the development authority or redevelopment commission shall hold a public hearing once every three (3) years during the existence of a district to determine whether the amount of the local income tax increment revenue and property tax increment revenue to be distributed to the development authority or redevelopment commission in subsequent years with respect to the district should be:

(1) all the local income tax increment revenue or a percentage of the increment revenue; or

(2) all the property tax increment revenue or a percentage of the increment revenue.

The development authority or redevelopment commission shall adopt a resolution setting forth its determination. The resolution shall be transmitted to the budget director, the department, and each affected county auditor.

As added by P.L.248-2017, SEC.10.

IC 36-7.5-4.5-23Funding of development projects within a transit development district; uses Sec. 23. (a) The development authority or redevelopment commission may undertake or provide funding for a development project that will be located within a district.

(b) The development authority or redevelopment commission may use money in its south shore improvement and development fund to provide funding and pay costs for a development project, including in the form of financing for a development project. If financing is used for a development project the obligation must be satisfied before the expiration of this chapter. Costs may be incurred for one (1) or more of the following:

(1) Planning and development of the improvement and all buildings, facilities, structures, and improvements related to the improvement.

(2) Acquisition of a site and clearing and preparing the site for construction.

(3) Equipment, facilities, structures, and improvements that are necessary or desirable to make the capital improvement suitable for use and operations.

(4) Architectural, engineering, consultant, and attorney's fees.

(5) Incidental expenses in connection with the issuance and sale of bonds.

(6) Reserves for principal and interest.

(7) Interest during construction.

(8) Financial advisory fees.

(9) Insurance during construction.

(10) Bond insurance, debt service reserve insurance, letters of credit, or other credit enhancement.

(11) In the case of refunding or refinancing, payment of the principal of, redemption premiums (if any) for, and interest on the bonds being refunded or refinanced.

(c) To use money in its south shore improvement and development fund for a development project, the development authority or redevelopment commission must adopt a resolution under IC 36-7.5-3 setting forth the development authority's or redevelopment commission's approval of the development project.

As added by P.L.248-2017, SEC.10.

IC 36-7.5-4.5-24Development authority; duty to provide information concerning employers and retail merchants in transit development district to department of state revenue Sec. 24. (a) If a district is established, the development authority shall provide to the department and to each redevelopment commission with a tax allocation area included within the district the following:

(1) A certified copy of the resolution establishing the district.

(2) Street names and the range of street numbers of each street in the district.

(b) In addition, the development authority or redevelopment commission, in the case of a district located in a cash participant county, shall provide to the department, in an electronic format approved by the department, a complete list of the following:

(1) Employers that pay income or wages to individuals working in the district.

(2) Retail merchants with a responsibility to remit gross retail taxes in the district.

The development authority and redevelopment commission shall update the list before July 1 of each year.

As added by P.L.248-2017, SEC.10.

IC 36-7.5-4.5-25Annual reporting requirement for employers operating in a transit development district Sec. 25. (a) Employers operating in a district shall report annually, in the manner and in the form prescribed by the department, information that the department determines necessary to calculate the state income tax increment revenue and local income tax increment revenue.

(b) Upon request of the department, employers in the district shall provide the department with:

(1) the names and addresses of all persons employed by the employer in the district;

(2) information concerning the wages earned by the persons for work performed in the district; and

(3) any other information the department requires to administer this chapter.

(c) If an employer fails to report the information required by this section, the department shall use the best information available for calculating the local income tax increment revenue.

As added by P.L.248-2017, SEC.10.

IC 36-7.5-4.5-26Annual reporting requirement for retail merchants operating in a transit development district; duty of development authority and political subdivisions to provide information Sec. 26. (a) Retail merchants operating in the district shall report, in the manner and in the form prescribed by the department, information that the department determines necessary to calculate the gross retail tax base period amount or gross retail tax increment revenue.

(b) At the request of the department, the development authority and any political subdivision in which all or a part of the district is located shall disclose to the department the names of the retail merchants described in subsection (a) and such other information that may assist in the determination of the gross retail tax base period amount or gross retail tax increment revenue.

(c) At the request of the department, a political subdivision in which the district is located shall provide to the department information requested by the department concerning permits issued by the political subdivision to retail merchants operating within the corridor.

(d) If the department is unable to determine the extent to which taxes remitted by a retail merchant are gross retail tax increment revenue for purposes of this chapter, the department shall use the best information available in calculating the gross retail tax increment revenue.

As added by P.L.248-2017, SEC.10.

IC 36-7.5-4.5-27Local income tax increment fund; deposit of local income tax increment revenue in an account within the fund for each transit development district Sec. 27. (a) If a district is established, the treasurer of state shall establish a local income tax increment fund and an account for each district established under this chapter for deposit of local income tax increment revenue for that district.

(b) The funds shall be administered by the treasurer of state. Money in a fund does not revert to the state general fund at the end of a state fiscal year.

(1) employees employed in a district with respect to wages earned for work performed in the district; and

(2) residents living in the district;

shall be deposited in the district's account within the local income tax increment fund. If an individual is a resident of one (1) district and is employed within another district, only the local income tax for the district in which the individual resides shall be deposited into the local income tax increment fund. For each district, the budget agency shall determine and transfer to the appropriate county account under IC 6-3.6-9 an amount equal to the local income tax base period amount for the district.

(d) The budget agency shall determine and transfer any amount of the local income tax increment revenue that will not be disbursed to the development authority or redevelopment commission to the appropriate county account under IC 6-3.6-9.

As added by P.L.248-2017, SEC.10. Amended by P.L.236-2023, SEC.195.

IC 36-7.5-4.5-28Certification and distributions from transit development district account Sec. 28. (a) Not later than November 30 of the year following the establishment of a district under this chapter, or November 30, 2024, whichever is later, the department shall determine the following for that district:

(1) The state income tax base period amount.

(2) The gross retail tax base period amount.

(3) The local income tax base period amount.

(b) Before December 1 of each year, beginning in the year two (2) years following the establishment of the district under this chapter, the department shall determine the following for each district for the preceding calendar year:

(1) The state income tax increment revenue.

(2) The gross retail tax increment revenue.

(3) The local income tax increment revenue.

(c) The department shall notify the budget agency and the development authority of each base period amount and annually each increment revenue amount.

(d) Before December 15 of each calendar year, the department shall determine and certify to the Indiana finance authority and the development authority the following:

(1) The state income tax increment revenue.

(2) The gross retail tax increment revenue.

(3) The local income tax increment revenue for each district.

(4) The extent to which the sum of the state income tax increment revenue and gross retail tax increment revenue certified under this subsection for all districts exceeds the sum of the amounts previously appropriated by the general assembly to the development authority for rail projects (including any amounts appropriated for debt service payments made by the Indiana finance authority for a rail project).

(e) Beginning in the following calendar year, the state comptroller shall distribute from a district's account within the local income tax increment fund to the development authority or redevelopment commission, in the case of a district located in a cash participant county, on or before March 1, the lesser of:

(1) the amount of local income tax increment revenue specified by the development authority or redevelopment commission; or

(2) the certified local income tax increment revenue amount for that district.

(f) The development authority or redevelopment commission shall deposit the local income tax increment revenue it receives in the appropriate district account in the south shore improvement and development fund.

(g) Notwithstanding subsection (a), if the department determines that an amount determined under section 7, 8, 9, 10, 13, or 14 of this chapter is in error, the department shall redetermine any erroneous amounts and notify the budget agency and development authority of any redetermination. If the department determines that the redetermination of an amount affects incremental tax amounts determined under subsection (b), the department shall recompute the incremental tax amounts and make any necessary adjustments to distributions or computations to reflect any redetermination.

(h) A municipality that includes more than one (1) transit development district may share its increment revenue among the transit development districts upon approval of the legislative body of the municipality.

As added by P.L.248-2017, SEC.10. Amended by P.L.236-2023, SEC.196; P.L.9-2024, SEC.558.

IC 36-7.5-4.5-29Expenses; liabilities; obligations Sec. 29. All expenses incurred in carrying out this chapter are payable solely from revenue received under this chapter or from the proceeds of the financial instruments issued by the development authority payable from revenues received under this chapter. A liability or obligation may not be incurred by the development authority that is greater than the revenue to be received under this chapter.

As added by P.L.248-2017, SEC.10.

IC 36-7.5-4.5-30Chapter broadly construed Sec. 30. (a) It is the intent of this chapter to identify all gross retail tax increment revenue collected within districts and state and local income tax increment revenue attributable to districts. This section shall be broadly construed by the department to achieve the purposes of this chapter.

(b) The department shall adopt guidelines to govern its responsibilities under this chapter.

As added by P.L.248-2017, SEC.10.

IC 36-7.5-4.5-31Distribution of remaining money upon completion Sec. 31. On the date that all financing obligations for a development project in a district established in a member county are no longer considered outstanding and all expenses incurred by the development authority in connection with the exercise of the development authority's duties and obligations set forth in this chapter have been paid, all money remaining in each district's account (or municipality's subaccount) in the south shore improvement and development fund shall be distributed to the redevelopment commission of the municipality in which each district is located, or to the municipality if a redevelopment commission does not exist.

As added by P.L.248-2017, SEC.10.

IC 36-7.5-4.5-32Covenants Sec. 32. The general assembly covenants that this chapter will not be repealed or amended in a manner that will adversely affect the owners of the financial instruments issued under this chapter by the development authority or redevelopment commission.

As added by P.L.248-2017, SEC.10.

IC 36-7.5-4.5-33Expiration Sec. 33. This chapter expires June 30, 2047.

As added by P.L.248-2017, SEC.10.

IC 36-7.5-5Chapter 5. RepealedRepealed by P.L.85-2017, SEC.126.

IC 36-7.5-6Chapter 6. Blighted Property Demolition Fund

36-7.5-6-1"Blighted" 36-7.5-6-2"Fund" 36-7.5-6-3"Qualified property" 36-7.5-6-4Blighted property demolition fund; purpose; administration 36-7.5-6-5Deposits in the fund; reimbursement 36-7.5-6-6Use of money in the fund 36-7.5-6-7Application for grants 36-7.5-6-8Reports concerning work and projects 36-7.5-6-9Report to budget committee 36-7.5-6-10Expiration

IC 36-7.5-6-1"Blighted" Sec. 1. As used in this chapter, "blighted" means real property, including a building or structure on the real property, that is no longer in acceptable or beneficial condition to its community and has lost its value as a social good or economic commodity or its functional status as a livable space. The term includes a vacant lot.

As added by P.L.195-2023, SEC.6.

IC 36-7.5-6-2"Fund" Sec. 2. As used in this chapter, "fund" refers to the blighted property demolition fund established by section 4 of this chapter.

As added by P.L.195-2023, SEC.6.

IC 36-7.5-6-3"Qualified property" Sec. 3. As used in this chapter, "qualified property" means commercial or residential real property, including a structure or building located on the real property, that:

(1) is the subject of an order for demolition and removal issued under IC 36-7-9-5(a)(6) or IC 36-7-9-5(a)(7);

(2) is:

(A) vacant or abandoned;

(B) blighted; or

(3) poses a public health or safety risk in the community, including by contributing to crime.

As added by P.L.195-2023, SEC.6.

IC 36-7.5-6-4Blighted property demolition fund; purpose; administration Sec. 4. (a) The blighted property demolition fund is established to provide grants to the city of Gary to demolish qualified properties.

(b) The fund consists of:

(1) appropriations from the general assembly;

(2) available federal funds;

(3) transfers of money under IC 4-33-13-5(a)(3)(B);

(4) deposits required under section 5(a) and 5(b) of this chapter; and

(5) gifts, grants, donations, or other contributions from any other public or private source.

(d) The treasurer of state shall invest the money in the fund not currently needed to meet the obligations of the fund in the same manner as other public funds may be invested.

(e) The money remaining in the fund at the end of a state fiscal year does not revert to the state general fund.

(f) Money in the fund is continuously appropriated for the purposes of this chapter.

As added by P.L.195-2023, SEC.6. Amended by P.L.157-2026, SEC.264.

IC 36-7.5-6-5Deposits in the fund; reimbursement Sec. 5. (a) In each state fiscal year beginning after June 30, 2023, the city of Gary shall transfer up to three million dollars ($3,000,000) to the development authority for deposit in the fund.

(b) In each state fiscal year beginning after June 30, 2023, and ending before July 1, 2025, the development authority shall deposit three million dollars ($3,000,000) in the fund from reserve amounts held by the development authority.

(c) After June 30, 2025, but not later than July 1, 2027, the development authority shall be reimbursed for all amounts deposited under subsection (b) using money in the fund. Budget committee review is not required for reimbursement under this subsection.

As added by P.L.195-2023, SEC.6. Amended by P.L.230-2025, SEC.146.

IC 36-7.5-6-6Use of money in the fund Sec. 6. (a) The development authority shall use the money in the fund to provide grants to the city of Gary for use in paying the reasonable and necessary costs associated with demolishing a qualified property located in the territory of a current or future transit development district or in the area surrounding the Gary Metro Center, including:

(1) demolition costs;

(2) permit fees;

(3) abatement of any hazardous materials;

(4) air monitoring at demolition sites;

(5) site grading; or

(6) replacement of damaged sidewalk, including any associated work.

(b) If the amount of money in the fund is greater than the amount needed for the purpose described in subsection (a), as determined by the development authority, the development authority may use money in the fund:

(1) to provide grants to the city of Gary for paying reasonable and necessary costs, as described in subsection (a), that are associated with demolishing a qualified property located in an area that is contiguous to the territory of a current or future transit development district; or

(2) for purposes of preliminary planning and design of the Gary Metro Center station revitalization project.

(1) City administrative costs, including project management.

(2) Property acquisition or redevelopment.

As added by P.L.195-2023, SEC.6.

IC 36-7.5-6-7Application for grants Sec. 7. The city of Gary may apply to the development authority for a grant from the fund in the manner prescribed by the development authority. The city of Gary shall submit to the development authority any information that the development authority determines is necessary.

As added by P.L.195-2023, SEC.6.

IC 36-7.5-6-8Reports concerning work and projects Sec. 8. The city of Gary shall provide reports to the development authority concerning the work completed, a detailed accounting of projects, project milestones, and other relevant information. The development authority may determine the frequency of the reporting required under this section.

As added by P.L.195-2023, SEC.6.

IC 36-7.5-6-9Report to budget committee Sec. 9. The development authority shall quarterly report to the budget committee on all uses of money in the fund, including grants provided and grant amounts.

As added by P.L.195-2023, SEC.6.

IC 36-7.5-6-10Expiration Sec. 10. This chapter expires July 1, 2050.

As added by P.L.195-2023, SEC.6.

IC 36-7.5-7Chapter 7. Lake County Economic Development and Convention Fund

36-7.5-7-1"Commuter transportation district" 36-7.5-7-2"Convention center authority" 36-7.5-7-3"Convention fund" 36-7.5-7-4"Reserve fund" 36-7.5-7-5Lake County economic development and convention fund; deposits; transfers; report to budget committee; updated feasibility study 36-7.5-7-6Use of money in the fund 36-7.5-7-7Public-private agreement 36-7.5-7-8Proposals for convention and event center; contents; approval of proposal 36-7.5-7-9Establishment of Lake County convention center authority; appointment of members; terms 36-7.5-7-10Lake County convention and event center reserve fund; administration 36-7.5-7-10Lake County convention and event center reserve fund; administration 36-7.5-7-11Goals for the participation of minority business enterprises and women's business enterprises; hiring 36-7.5-7-11.5Lake County convention and event center authorizations 36-7.5-7-11.7Obligations legalized and validated 36-7.5-7-12Expiration

IC 36-7.5-7-1"Commuter transportation district" Sec. 1. As used in this chapter, "commuter transportation district" means the northern Indiana commuter transportation district established under IC 8-5-15.

As added by P.L.195-2023, SEC.7.

IC 36-7.5-7-2"Convention center authority" Sec. 2. As used in this chapter, "convention center authority" refers to the Lake County convention center authority established under section 9 of this chapter.

As added by P.L.195-2023, SEC.7.

IC 36-7.5-7-3"Convention fund" Sec. 3. As used in this chapter, "convention fund" means the Lake County economic development and convention fund established by section 5 of this chapter.

As added by P.L.195-2023, SEC.7.

IC 36-7.5-7-4"Reserve fund" Sec. 4. As used in this chapter, "reserve fund" means the Lake County convention and event center reserve fund established by section 10 of this chapter.

As added by P.L.195-2023, SEC.7.

IC 36-7.5-7-5Lake County economic development and convention fund; deposits; transfers; report to budget committee; updated feasibility study Sec. 5. (a) The Lake County economic development and convention fund is established. The fund shall be administered by the development authority.

(b) The convention fund consists of:

(1) deposits under IC 4-33-13-5(a)(2)(C) and IC 4-33-13-5(a)(3)(A);

(2) deposits under subsection (c);

(3) appropriations to the fund;

(4) gifts, grants, loans, bond proceeds, and other money received for deposit in the fund; and

(5) other deposits or transfers of funds from local units located in Lake County.

(c) If a proposal is approved as provided under this chapter, each state fiscal year, beginning with the first state fiscal year that begins after the proposal is approved, the approved entity shall deposit up to five million dollars ($5,000,000) in the convention fund. The obligation of the city of Gary, as the approved entity, for each state fiscal year under this subsection is satisfied by the distributions made by the state comptroller on behalf of the city of Gary under IC 4-33-13-5(a)(2)(C). However, if the total amount distributed under IC 4-33-13-5(a)(2)(C) on behalf of the city of Gary with respect to a particular state fiscal year is less than the amount required by this subsection, the fiscal officer of the city of Gary shall transfer the amount of the shortfall to the convention fund from any source of revenue available to the city of Gary other than property taxes. The state comptroller shall certify the amount of any shortfall to the fiscal officer of the city of Gary after making the distribution required by IC 4-33-13-5(a)(2)(C) on behalf of the city of Gary with respect to a particular state fiscal year.

(d) The development authority shall administer money, including determining amounts to be used and the specific purposes, from the convention fund.

(e) Except as provided in section 8(d) of this chapter, the money remaining in the convention fund at the end of a state fiscal year does not revert to the state general fund.

(f) Money in the convention fund is continuously appropriated for the purposes of this chapter.

(g) Subject to budget committee review, but except as provided in subsection (i), the development authority may receive reimbursement for expenses incurred and a reasonable and customary amount for providing administrative services from money in the convention fund.

(h) The development authority shall quarterly report to the budget committee on all uses of money in the convention fund and the status of the convention and event center project.

(i) The development authority shall conduct an updated feasibility study related to a potential convention and event center located in Lake County. The development authority shall be reimbursed for the costs of obtaining the updated feasibility study from money in the fund. Budget committee review is not required for reimbursement under this subsection.

As added by P.L.195-2023, SEC.7. Amended by P.L.157-2026, SEC.265.

IC 36-7.5-7-6Use of money in the fund Sec. 6. (a) Money in the convention fund may be used only for the following:

(1) To acquire, improve, prepare, modernize, construct, repair, demolish, and equip a convention center located in Lake County.

(2) To pay the principal and interest on any obligations, including bonds or leases and development costs, incurred by the development authority for the purpose of financing or refinancing the development of a convention center located in Lake County.

(3) To establish, augment, or restore a debt service reserve for obligations described in this subsection.

(4) If the development authority determines excess money exists in the convention fund, for improvements to the convention center and around the convention center.

(b) Money in the convention fund may not be used to pay operating expenses.

As added by P.L.195-2023, SEC.7.

IC 36-7.5-7-7Public-private agreement Sec. 7. A public-private agreement may be entered into for purposes of operating and maintaining a convention center located in Lake County.

As added by P.L.195-2023, SEC.7.

IC 36-7.5-7-8Proposals for convention and event center; contents; approval of proposal Sec. 8. (a) Beginning July 1, 2023, the Lake County board of commissioners shall begin accepting proposals for the development, operation, and an ownership share in a Lake County convention and event center from any entity qualified to fund and operate a convention and event center, including local political subdivisions. Subject to subsection (d), timely proposals shall be submitted not later than December 1, 2024. A proposal must include at least the following:

(1) Any variance in the entity's proposal from what is described in the updated feasibility study prepared under section 5(i) of this chapter as the variance is related to a return on investment analysis, including anticipated income generated countywide, peripheral investment anticipated to result from the project, or anticipated gross retail tax revenue to be generated from the project.

(2) The uses that the convention and event center will accommodate.

(3) Acknowledgment that in order to secure money from the convention fund and reserve fund, the Lake County convention center authority, as described in section 9 of this chapter, will share in ownership of the convention and event center.

(4) An operating plan, including information concerning:

(A) any third party entity expected to manage and operate the facility;

(B) any professional experience with convention center operations;

(D) any experience with efficiency programs used for managing operating costs and capital expenditures.

(5) An anticipated operating budget for the facility, including the financing of any operational shortfall and pro forma operating statements for the first five (5) years of operations.

(6) Any documents related to vendor agreements, leases, partnerships, and financing plans and commitments.

(7) Any proposed or available hotel accommodations that may be dedicated for the promotion and sales of the convention and event center, and not for promotional uses for any other associated facility.

(8) Any other information considered necessary by the Lake County board of commissioners.

(b) Proposals shall be submitted to the Lake County board of commissioners and reviewed for completeness, adherence to the requirements under this section, and evaluation of the materials submitted.

(c) The Lake County board of commissioners shall hold public hearings concerning proposals submitted and for the selection of any professional advisers to be used in approval of a proposal.

(d) If a proposal is approved, the Lake County board of commissioners shall adopt a resolution to that effect. If no proposal is approved before June 1, 2025, proposals may continue to be submitted to the Lake County board of commissioners for review. However, if no proposal is approved before January 1, 2028, no additional proposals may be accepted, and any money in the fund reverts to the state general fund.

As added by P.L.195-2023, SEC.7. Amended by P.L.102-2024, SEC.4.

IC 36-7.5-7-9Establishment of Lake County convention center authority; appointment of members; terms Sec. 9. (a) If a proposal is approved under section 8 of this chapter, following the approval of the proposal, and when the construction of the convention and event center is substantially completed so that the convention and event center can be used for its intended purpose, the Lake County convention center authority is established for the purpose of holding an equal share of ownership of the Lake County convention and event center with the entity whose proposal is approved and for providing general oversight of the upkeep, improvements, and management team as outlined in the accepted proposal. Subject to subsection (e), the convention center authority consists of seven (7) members, appointed as follows:

(1) Three (3) members appointed by the entity whose proposal is approved under section 8 of this chapter.

(2) Three (3) members appointed by the Lake County board of commissioners.

(3) One (1) member appointed by the governor.

Individuals appointed to the convention center authority must be Indiana residents and have professional experience in commercial facility management. An appointing authority may not appoint an attorney in active standing as a member of the authority.

(b) The term of office for a member of the board is two (2) years. The term begins July 1 of the year in which the member is appointed and ends on June 30 of the second year following the member's appointment. A member may be reappointed after the member's term has expired.

(c) A vacancy in membership must be filled in the same manner as the original appointment. Appointments made to fill a vacancy that occurs before the expiration of a term are for the remainder of the unexpired term.

(d) The member appointed under subsection (a)(3) shall serve as the chairperson of the convention center authority. The convention center authority shall meet at the call of the chairperson.

(e) An individual may not be appointed to the convention center authority if the individual is a party to a contract or agreement with the entity whose proposal is approved, is employed by the entity whose proposal is approved, or otherwise has a direct or indirect financial interest in the entity whose proposal is approved under this chapter.

As added by P.L.195-2023, SEC.7. Amended by P.L.157-2026, SEC.266.

IC 36-7.5-7-10Lake County convention and event center reserve fund; administration Note: This version of section effective until 3-12-2026. See also following version of this section, effective 3-12-2026.

Sec. 10. (a) A local county fund known as the Lake County convention and event center reserve fund is established to pay for:

(1) additions;

(2) refurbishment; and

(3) budget shortfalls or other unusual costs;

of a convention and event center that is constructed using money from the convention fund under this chapter.

(b) The reserve fund consists of:

(1) transfers under IC 6-9-2-1.5(c) (as in effect before amendment in the 2026 session of the general assembly); and

(2) gifts, grants, donations, or other contributions from any other public or private source.

As added by P.L.195-2023, SEC.7. Amended by P.L.44-2026, SEC.28.

IC 36-7.5-7-10Lake County convention and event center reserve fund; administration Note: This version of section effective 3-12-2026. See also preceding version of this section, effective until 3-12-2026.

Sec. 10. (a) A local county fund known as the Lake County convention and event center reserve fund is established to pay for:

(1) additions;

(2) refurbishment; and

(3) budget shortfalls or other unusual costs;

of a convention and event center that is constructed using money from the convention fund under this chapter.

(b) The reserve fund consists of:

(1) transfers under IC 6-9-2-1.5(c) (as in effect before amendment in the 2026 session of the general assembly); and

(2) gifts, grants, donations, or other contributions from any other public or private source.

(c) The Lake County commissioners shall administer the reserve fund until the convention center authority is established. Thereafter, the convention center authority shall administer the reserve fund.

As added by P.L.195-2023, SEC.7. Amended by P.L.44-2026, SEC.28; P.L.145-2026, SEC.305; P.L.157-2026, SEC.267.

IC 36-7.5-7-11Goals for the participation of minority business enterprises and women's business enterprises; hiring Sec. 11. (a) With respect to projects undertaken by the development authority under this chapter, the development authority shall set a goal for participation by minority business enterprises of fifteen percent (15%) and women's business enterprises of five percent (5%), consistent with the goals of delivering the project on time and within the budgeted amount and, insofar as possible, using Indiana businesses for employees, goods, and services. In fulfilling the goal, the development authority shall take into account historical precedents in the same market.

(b) In addition to the provisions of subsection (a), with respect to construction and demolition projects undertaken by the development authority under this chapter, the development authority shall set a goal for hiring at least twenty percent (20%) of employees from local units:

(1) located within the boundaries of the development authority; and

(2) with an unemployment rate that exceeds the statewide unemployment rate by more than twenty percent (20%).

As added by P.L.195-2023, SEC.7.

IC 36-7.5-7-11.5Lake County convention and event center authorizations Sec. 11.5. (a) Notwithstanding any other law:

(1) the northwest Indiana regional development authority is authorized to issue and sell bonds to the Indiana finance authority under chapter 4 of this article for the purpose of financing the Lake County convention and event center, to pay such bonds from lease rental payments received from the City of Gary, and to construct the Lake County convention and event center for lease to the City of Gary and the Lake County convention center authority;

(2) the City of Gary is authorized to lease the Lake County convention and event center from the northwest Indiana regional development authority for construction of the Lake County convention and event center and pledge amounts for payment of lease rentals;

(3) the Indiana finance authority is authorized to purchase bonds of the northwest Indiana regional development authority for the Lake County convention and event center; and

(4) the northwest Indiana regional development authority, the City of Gary, and the Indiana finance authority are authorized to enter into a governance agreement for the Lake County convention and event center.

(b) No action may be brought challenging any:

(1) lease;

(2) resolution;

(3) ordinance;

(4) contract;

(5) issuance of bonds;

(6) issuance of notes;

(7) issuance of obligations;

(8) decision; or

(9) other action taken under this article;

more than fifteen (15) days after the adoption of a resolution or ordinance approving an item described under this subsection.

(c) Upon the expiration of the fifteen (15) day period described in subsection (b), any item described in subsection (b) shall be conclusively presumed to be fully authorized under the laws of the state and any person shall be estopped from challenging the authorization, validity, execution of, delivery of, or issuance of any of the items described in subsection (b).

As added by P.L.157-2026, SEC.268.

IC 36-7.5-7-11.7Obligations legalized and validated Sec. 11.7. (a) All bonds, notes, evidences of indebtedness, leases, or other written obligations issued, incurred, or executed under this article for the Lake County convention and event center, and subject to budget committee review, by or in the name of the:

(1) Indiana finance authority;

(2) the northwest Indiana regional development authority; or

(3) the City of Gary;

are hereby legalized and declared valid after budget committee review.

(b) Any pledge, dedication, or designation of revenues, conveyance, or mortgage securing the bonds, notes, evidence of indebtedness, leases, or other written legal obligations issued, incurred or executed under this article for the Lake County convention and event center, and subject to budget committee review, by or in the name of the:

(1) Indiana finance authority;

(2) the northwest Indiana regional development authority; or

(3) the City of Gary;

are hereby legalized and declared valid after budget committee review.

(c) Any resolutions, proceedings, or actions taken or adopted under this article or IC 5-1.2 under which the bonds, notes, evidence of indebtedness, leases, or other written legal obligations were or will be issued or incurred or under which the pledge, dedication, or designation of revenues, conveyance, or mortgage was or will be granted for the financing, construction, or operation of the Lake County convention and event center, and subject to budget committee review, by or in the name of the:

(1) Indiana finance authority;

(2) the northwest Indiana regional development authority; or

(3) the City of Gary;

are hereby legalized and declared valid after budget committee review.

As added by P.L.157-2026, SEC.269.

IC 36-7.5-7-12Expiration Sec. 12. This chapter expires July 1, 2050.

As added by P.L.195-2023, SEC.7.

IC 36-7.5-8Chapter 8. Gary Metro Center Station Revitalization Fund

36-7.5-8-1"Board" 36-7.5-8-2"Fund" 36-7.5-8-3Gary Metro Center station revitalization fund; administration 36-7.5-8-4Deposits in the fund; federal funding 36-7.5-8-5Use of money in the fund 36-7.5-8-6Gary Metro Center station revitalization project board; appointment of members; ownership 36-7.5-8-7Member terms 36-7.5-8-8Report to budget committee

IC 36-7.5-8-1"Board" Sec. 1. As used in this chapter, "board" refers to the Gary Metro Center station revitalization project board established by section 6 of this chapter.

As added by P.L.195-2023, SEC.8.

IC 36-7.5-8-2"Fund" Sec. 2. As used in this chapter, "fund" refers to the Gary Metro Center station revitalization fund established by section 3 of this chapter.

As added by P.L.195-2023, SEC.8.

IC 36-7.5-8-3Gary Metro Center station revitalization fund; administration Sec. 3. (a) The Gary Metro Center station revitalization fund is established to provide funding for the Gary Metro Center station revitalization project.

(b) The fund consists of:

(1) appropriations from the general assembly;

(2) available federal funds;

(3) transfers of money under IC 4-33-13-5(a)(3)(C);

(4) deposits required under section 4 of this chapter; and

(5) gifts, grants, donations, or other contributions from any other public or private source.

(d) The money remaining in the fund at the end of a state fiscal year does not revert to the state general fund.

(e) Money in the fund is continuously appropriated for the purposes of this chapter.

(f) Subject to budget committee review, the development authority may receive reimbursement for expenses incurred and a reasonable and customary amount for providing administrative services from money in the fund.

As added by P.L.195-2023, SEC.8. Amended by P.L.157-2026, SEC.270.

IC 36-7.5-8-4Deposits in the fund; federal funding Sec. 4. (a) In each state fiscal year beginning after June 30, 2025, the city of Gary shall transfer up to three million dollars ($3,000,000) to the development authority for deposit in the fund, in order to obtain state matching grants and the issuance of bonds for the Gary Metro Center station revitalization project. The city of Gary may enter into an agreement with the licensed owner operating a riverboat sited at a location approved under IC 4-33-6-4.5 for a term of twenty-five (25) years, for contributions of up to three million dollars ($3,000,000), in order to obtain state matching grants.

(b) The city of Gary and the development authority shall apply for all available federal grants to defer the cost of construction for the Gary Metro Center station revitalization project.

(c) The northern Indiana commuter transportation district established under IC 8-5-15 shall pursue federal funding for the purposes of modernizing the Gary metro train platform.

As added by P.L.195-2023, SEC.8.

IC 36-7.5-8-5Use of money in the fund Sec. 5. (a) The development authority shall use the money in the fund for planning costs, design costs, engineering costs, and architectural costs, and to provide matching funds needed for federal matching grants for the demolition and reconstruction of the Gary Metro Center station. The development authority shall reconstruct the Gary Metro Center station and coordinate among the several transit authorities, the city of Gary, and the federal government in accomplishing the replacement of the facility.

(b) If the amount of money in the fund is greater than the amount needed for the purposes described in subsection (a), as determined by the development authority, the development authority may use money in the fund:

(1) to provide grants to the city of Gary for paying reasonable and necessary costs associated with demolishing a qualified property (as defined in IC 36-7.5-6-3) located in an area that is contiguous to the territory of a current or future transit development district;

(2) for purposes of revitalizing property contiguous to the territory of a current or future transit development district;

(3) for other costs related to expansion of the Gary Metro Center station; and

(4) for purposes of paying expenses for enhancing public safety in the area immediately surrounding the Gary Metro Center station and within the established transit development district.

As added by P.L.195-2023, SEC.8.

IC 36-7.5-8-6Gary Metro Center station revitalization project board; appointment of members; ownership Sec. 6. (a) The Gary Metro Center station revitalization project board is established.

(b) Subject to subsection (f), the board consists of the following seven (7) members:

(1) Three (3) members appointed by the executive of the city of Gary.

(2) Three (3) members appointed by the development authority.

(3) One (1) member appointed by the governor.

Individuals appointed to the board must have professional experience in commercial facility management.

(d) The board shall provide oversight of the ongoing maintenance and operation of the Gary Metro Center station.

(e) The member appointed under subsection (b)(3) shall serve as the chairperson of the board. The board shall meet at the call of the chairperson.

(f) An individual may not be appointed to the board if the individual is a party to a contract or agreement with an entity involved in the reconstruction of the Gary Metro Center station, is employed by an entity involved in the reconstruction of the Gary Metro Center station, or otherwise has a direct or indirect financial interest in an entity involved in the reconstruction of the Gary Metro Center station.

As added by P.L.195-2023, SEC.8.

IC 36-7.5-8-7Member terms Sec. 7. (a) The term of office for a member of the board is two (2) years. The term begins July 1 of the year in which the member is appointed and ends on June 30 of the second year following the member's appointment. A member may be reappointed after the member's term has expired.

(b) A vacancy in membership must be filled in the same manner as the original appointment. Appointments made to fill a vacancy that occurs before the expiration of a term are for the remainder of the unexpired term.

As added by P.L.195-2023, SEC.8.

IC 36-7.5-8-8Report to budget committee Sec. 8. The development authority shall quarterly report to the budget committee on all uses of money in the fund, including grants provided and grant amounts.

As added by P.L.195-2023, SEC.8.

IC 36-7.6ARTICLE 7.6. REGIONAL DEVELOPMENT AUTHORITIES

Ch. 1.Definitions Ch. 2.Development Authority and Board Ch. 3.Development Authority Powers and Duties Ch. 4.Financing; Issuance of Bonds; Leases

IC 36-7.6-1Chapter 1. Definitions

36-7.6-1-1Application of definitions 36-7.6-1-2"Airport authority" 36-7.6-1-3"Airport authority project" 36-7.6-1-4"Bonds" 36-7.6-1-5"Commuter transportation district" 36-7.6-1-6"Commuter transportation district project" 36-7.6-1-7Repealed 36-7.6-1-8"Development authority" 36-7.6-1-9"Development board" 36-7.6-1-10"Economic development project" 36-7.6-1-11"Eligible political subdivision" 36-7.6-1-12"Project" 36-7.6-1-12.5"Qualified city" 36-7.6-1-13"Regional transportation authority" 36-7.6-1-14"Regional transportation authority project"

IC 36-7.6-1-1Application of definitions Sec. 1. Except as otherwise provided, the definitions in this chapter apply throughout this article.

As added by P.L.232-2007, SEC.7.

IC 36-7.6-1-2"Airport authority" Sec. 2. "Airport authority" refers to an airport authority established under IC 8-22-3.

As added by P.L.232-2007, SEC.7.

IC 36-7.6-1-3"Airport authority project" Sec. 3. "Airport authority project" means a project that can be financed with the proceeds of bonds issued by an airport authority under IC 8-22-3.

As added by P.L.232-2007, SEC.7.

IC 36-7.6-1-4"Bonds" Sec. 4. "Bonds" means, except as otherwise provided, bonds, notes, or other evidences of indebtedness issued by a development authority.

As added by P.L.232-2007, SEC.7.

IC 36-7.6-1-5"Commuter transportation district" Sec. 5. "Commuter transportation district" refers to a commuter transportation district established under IC 8-5-15.

As added by P.L.232-2007, SEC.7.

IC 36-7.6-1-6"Commuter transportation district project" Sec. 6. "Commuter transportation district project" means a project that can be financed with the proceeds of bonds issued by a commuter transportation district under IC 8-5-15.

As added by P.L.232-2007, SEC.7.

IC 36-7.6-1-7RepealedAs added by P.L.232-2007, SEC.7. Repealed by P.L.178-2015, SEC.5.

IC 36-7.6-1-8"Development authority" Sec. 8. "Development authority" refers to a regional development authority established under IC 36-7.6-2-3.

As added by P.L.232-2007, SEC.7.

IC 36-7.6-1-9"Development board" Sec. 9. "Development board" refers to the governing body of a development authority appointed under IC 36-7.6-2-3.

As added by P.L.232-2007, SEC.7.

IC 36-7.6-1-10"Economic development project" Sec. 10. "Economic development project" means an economic development project described in IC 6-3.6-2-8.

As added by P.L.232-2007, SEC.7. Amended by P.L.197-2016, SEC.144.

IC 36-7.6-1-11"Eligible political subdivision" Sec. 11. "Eligible political subdivision" means any of the following:

(1) A county.

(2) A municipality.

(3) An airport authority.

(4) A commuter transportation district.

(5) A regional transportation authority.

As added by P.L.232-2007, SEC.7.

IC 36-7.6-1-12"Project" Sec. 12. "Project" means an airport authority project, a commuter transportation district project, an economic development project, a regional transportation authority project, an intermodal transportation project, a regional trail or greenway project, or any project that enhances a region with the goal of attracting people or business.

As added by P.L.232-2007, SEC.7. Amended by P.L.178-2015, SEC.6.

IC 36-7.6-1-12.5"Qualified city" Sec. 12.5. "Qualified city" means:

(1) a second class city; or

(2) a city or town that is eligible to become a second class city.

As added by P.L.178-2015, SEC.7.

IC 36-7.6-1-13"Regional transportation authority" Sec. 13. "Regional transportation authority" means a regional transportation authority established under IC 36-9-3.

As added by P.L.232-2007, SEC.7.

IC 36-7.6-1-14"Regional transportation authority project" Sec. 14. "Regional transportation authority project" means a project that can be financed with the proceeds of bonds issued by a regional transportation authority under IC 36-9-3.

As added by P.L.232-2007, SEC.7.

IC 36-7.6-2Chapter 2. Development Authority and Board

36-7.6-2-1Establishment of development authorities 36-7.6-2-2Body corporate and politic; development authority activities 36-7.6-2-3Units that may establish a development authority; requirements 36-7.6-2-4Joining an existing development authority 36-7.6-2-5Minimum length of participation; withdrawal 36-7.6-2-6Liability for unpaid transfers after withdrawal 36-7.6-2-7Development board; members 36-7.6-2-8Repealed 36-7.6-2-9Terms; reappointment; oath; per diem 36-7.6-2-10Officers 36-7.6-2-11Quarterly meetings; calling meetings; quorum; authorization of action 36-7.6-2-12Bylaws and rules 36-7.6-2-13Public purchasing and public works project laws apply 36-7.6-2-14Annual financial audit 36-7.6-2-15Local advisory committees

IC 36-7.6-2-1Establishment of development authorities Sec. 1. The provisions of section 3 of this chapter govern the establishment of a development authority.

As added by P.L.232-2007, SEC.7. Amended by P.L.178-2015, SEC.8.

IC 36-7.6-2-2Body corporate and politic; development authority activities Sec. 2. A development authority established under this chapter is a separate body corporate and politic that shall carry out the purposes of this article by:

(1) acquiring, constructing, equipping, owning, leasing, and financing projects and facilities for lease to or for the benefit of eligible political subdivisions under this article; and

(2) funding and developing:

(A) airport authority projects;

(B) commuter transportation district and other rail projects and services;

(D) economic development projects;

(E) intermodal transportation projects;

(F) regional trail or greenway projects;

(G) regional transportation infrastructure projects under IC 36-9-43; and

(H) any project that enhances the region with the goal of attracting people or business;

that are of regional importance.

As added by P.L.232-2007, SEC.7. Amended by P.L.178-2015, SEC.9; P.L.229-2017, SEC.41.

IC 36-7.6-2-3Units that may establish a development authority; requirements Sec. 3. (a) A development authority may be established by any of the following:

(1) One (1) or more counties and one (1) or more adjacent counties.

(2) One (1) or more counties and one (1) or more qualified cities in adjacent counties.

(3) One (1) or more qualified cities and one (1) or more qualified cities in adjacent counties.

(b) A county or qualified city may participate in the establishment of a development authority under this section and become a member of the development authority only if the fiscal body of the county or qualified city adopts an ordinance authorizing the county or qualified city to participate in the establishment of the development authority.

(c) When a county establishes a development authority with another unit as provided in this chapter, each qualified city and third class city in the county also becomes a member of the development authority, without further action by the qualified city, third class city, or the development authority.

(d) Notwithstanding any other provision of this article, a county or municipality may be a member of only one (1) development authority.

(e) Notwithstanding any other provision of this article, a county or municipality that is a member of the northwest Indiana regional development authority under IC 36-7.5 may not be a member of a development authority under this article.

(f) A development authority shall notify the Indiana economic development corporation in writing promptly after the development authority is established.

As added by P.L.232-2007, SEC.7. Amended by P.L.178-2015, SEC.10.

IC 36-7.6-2-4Joining an existing development authority Sec. 4. (a) A county that:

(1) is not a member of a development authority; and

(2) is adjacent to a county that:

(A) is a member of a development authority; or

(B) contains a member of a development authority;

may join that development authority under this article.

(b) A qualified city or a third class city that:

(1) is not a member of a development authority; and

(2) is located in a county that:

(A) is adjacent to a county that is a member of a development authority; or

(B) is adjacent to a county containing a member of a development authority;

may join that development authority under this article.

(1) is not a member of a development authority; and

(2) is located in a county that:

(A) is a member of a development authority;

(B) is adjacent to a county that is a member of a development authority; or

may join that development authority under this article.

(d) A county or qualified city described in subsection (a), (b), or (c) may join a development authority under this article only if:

(1) the fiscal body of the county, qualified city, third class city, or town adopts an ordinance authorizing the county, qualified city, third class city, or town to become a member of the development authority; and

(2) the development board of the development authority adopts a resolution authorizing the county, qualified city, third class city, or town to become a member of the development authority.

(e) A county, qualified city, third class city, or town becomes a member of a development authority upon passage of a resolution under subsection (d)(2) authorizing the county, qualified city, third class city, or town to become a member of the development authority.

(f) Notwithstanding subsection (e), if a county joins a development authority under this section, each qualified city and third class city in the county also becomes a member of the development authority, without further action by the qualified city, third class city, or the development authority.

(g) A development authority shall notify the Indiana economic development corporation promptly in writing when a new member joins the development authority.

As added by P.L.232-2007, SEC.7. Amended by P.L.3-2008, SEC.265; P.L.178-2015, SEC.11.

IC 36-7.6-2-5Minimum length of participation; withdrawal Sec. 5. (a) This section applies to a county, qualified city, third class city, or town authorized to establish or join a development authority under this article.

(b) A county, qualified city, third class city, or town described in subsection (a) shall be a member of the development authority for at least eight (8) years after the date the county, qualified city, third class city, or town becomes a member of the development authority.

(c) At least twelve (12) months and not more than eighteen (18) months before the end of a county's, qualified city's, third class city's, or town's membership period under subsection (b) or this subsection, the county, qualified city, third class city, or town described in subsection (a) must adopt an ordinance that:

(1) commits the county, qualified city, third class city, or town to an additional eight (8) years as a member of the development authority, beginning at the end of the current membership period; or

(2) withdraws the county, qualified city, third class city, or town from membership in the development authority not earlier than the end of the current membership period.

(d) A county, qualified city, third class city, or town described in subsection (a) may withdraw from a development authority as provided in this section without the approval of the development board. However, the withdrawal of a county does not affect the membership of a qualified city or third class city that became a member of the development authority as a result of the county's membership.

(e) If at the end of a county's membership period a county described in subsection (a) does not withdraw from the development authority under this section and remains a member of the development authority, the qualified cities and third class cities in the county may not withdraw from the development authority and remain members of the development authority.

(f) A development authority shall notify the Indiana economic development corporation promptly in writing when a member withdraws from the development authority.

As added by P.L.232-2007, SEC.7. Amended by P.L.178-2015, SEC.12.

IC 36-7.6-2-6Liability for unpaid transfers after withdrawal Sec. 6. A county or municipality that withdraws from a development authority under section 5 of this chapter is liable to the development authority for any unpaid transfers under:

(1) IC 36-7.6-4-2; or

(2) an agreement between the members of the development authority and the development board;

that become due before the withdrawal of the county or municipality from the development authority is effective.

As added by P.L.232-2007, SEC.7. Amended by P.L.178-2015, SEC.13.

IC 36-7.6-2-7Development board; members Sec. 7. (a) A development authority is governed by a development board appointed under this section.

(b) A development board is composed of five (5) members appointed by written agreement of the executives of the members of the development authority.

(1) may not be an elected official or an employee of a member county or municipality; and

(2) must have knowledge of and at least five (5) years professional work experience in at least one (1) of the following:

(A) Transportation.

(B) Regional economic development.

(D) Private, nonprofit sector, or academia.

As added by P.L.232-2007, SEC.7. Amended by P.L.178-2015, SEC.14.

IC 36-7.6-2-8RepealedAs added by P.L.232-2007, SEC.7. Repealed by P.L.178-2015, SEC.15.

IC 36-7.6-2-9Terms; reappointment; oath; per diem Sec. 9. (a) A member appointed to a development board serves a four (4) year term. A member may be reappointed to subsequent terms.

(b) A member of a development board may only be removed from the development board before the expiration of the four (4) year term by written agreement of at least three-fourths (3/4) of the executives of the members of the development authority.

(c) If a vacancy occurs on a development board, the executives of the members of the development authority at the time of the vacancy shall fill the vacancy by appointing a new member for the remainder of the vacated term and as otherwise provided in subsection (a).

(d) Each member appointed to a development board, before entering upon the duties of office, must take and subscribe an oath of office under IC 5-4-1, which shall be endorsed upon the certificate of appointment and filed with the records of the development board.

(e) A member appointed to a development board is not entitled to receive any compensation for performance of the member's duties. However, a member is entitled to a per diem from the development authority for the member's participation in development board meetings. The amount of the per diem is equal to the amount of the per diem provided under IC 4-10-11-2.1(b).

As added by P.L.232-2007, SEC.7. Amended by P.L.178-2015, SEC.16.

IC 36-7.6-2-10Officers Sec. 10. (a) In January of each year, a development board shall hold an organizational meeting at which the development board shall elect the following officers from the members of the development board:

(1) A chair.

(2) A vice chair.

(3) A secretary-treasurer.

(b) The affirmative vote of at least a majority of the appointed members of a development board is necessary to elect an officer under subsection (a).

(c) An officer elected under subsection (a) serves from the date of the officer's election until the officer's successor is elected and qualified.

As added by P.L.232-2007, SEC.7.

IC 36-7.6-2-11Quarterly meetings; calling meetings; quorum; authorization of action Sec. 11. (a) A development authority is a public agency for purposes of IC 5-14-1.5 and IC 5-14-3. A development board is a governing body for purposes of IC 5-14-1.5.

(b) A development board shall meet at least quarterly.

(c) The chair of a development board or any two (2) members of a development board may call a special meeting of the development board.

(d) A majority of the appointed members of a development board constitutes a quorum.

(e) The affirmative votes of at least a majority of the appointed members of a development board are necessary to authorize any action of the development authority.

As added by P.L.232-2007, SEC.7. Amended by P.L.144-2020, SEC.4.

IC 36-7.6-2-12Bylaws and rules Sec. 12. A development board shall adopt the bylaws and rules that the development board considers necessary for the proper conduct of the development board's duties and the safeguarding of the development authority's funds and property.

As added by P.L.232-2007, SEC.7. Amended by P.L.178-2015, SEC.17.

IC 36-7.6-2-13Public purchasing and public works project laws apply Sec. 13. (a) A development authority shall comply with IC 5-22 (public purchasing), IC 36-1-12 (public work projects), and any applicable federal bidding statutes and regulations. An eligible political subdivision that receives a loan, a grant, or other financial assistance from a development authority or enters into a lease with a development authority must comply with applicable federal, state, and local public purchasing and bidding laws and regulations. However, a purchasing agency (as defined in IC 5-22-2-25) of an eligible political subdivision may:

(1) assign or sell a lease for property to a development authority; or

(2) enter into a lease for property with a development authority;

at any price and under any other terms and conditions as may be determined by the eligible political subdivision and the development authority. However, before making an assignment or a sale of a lease or entering into a lease under this section that would otherwise be subject to IC 5-22, the eligible political subdivision or its purchasing agent must obtain or cause to be obtained a purchase price for the property to be subject to the lease from the lowest responsible and responsive bidder in accordance with the requirements for the purchase of supplies under IC 5-22.

(b) In addition to the provisions of subsection (a), with respect to projects undertaken by a development authority, the development authority shall set a goal for participation by minority business enterprises and women's business enterprises. The goals must be consistent with:

(1) the participation goals established by the counties and municipalities that are members of the development authority; and

(2) the goals of delivering the project on time and within the budgeted amount and, insofar as possible, using Indiana businesses for employees, goods, and services.

As added by P.L.232-2007, SEC.7. Amended by P.L.252-2015, SEC.50.

IC 36-7.6-2-14Annual financial audit Sec. 14. (a) The state board of accounts shall, pursuant to IC 5-11-1-7 and IC 5-11-1-24, allow each development authority to contract with a certified public accountant for an annual financial audit of the development authority. The certified public accountant may not have a significant financial interest in a project, facility, or service funded by or leased by or to any development authority. The certified public accountant selected by a development authority must be approved by the state examiner and is subject to the direction of the state examiner while performing an annual financial audit under this article.

(b) The certified public accountant shall present an audit report not later than four (4) months after the end of each calendar year and shall make recommendations to improve the efficiency of development authority operations. The certified public accountant shall also perform a study and evaluation of internal accounting controls and shall express an opinion on the controls that were in effect during the audit period.

(c) A development authority shall pay the cost of the annual financial audit under subsection (a). In addition, the state board of accounts may at any time conduct an audit of any phase of the operations of a development authority. A development authority shall pay the cost of any audit by the state board of accounts.

(d) The state board of accounts may waive the requirement that a certified public accountant perform an annual financial audit of a development authority for a particular year if the development authority certifies to the state board of accounts that the development authority had no financial activity during that year.

As added by P.L.232-2007, SEC.7. Amended by P.L.237-2017, SEC.47; P.L.257-2019, SEC.146.

IC 36-7.6-2-15Local advisory committees Sec. 15. Each county or municipality that is member of a development authority may appoint a local advisory committee to advise the county or municipality on issues related to the development authority.

As added by P.L.232-2007, SEC.7.

IC 36-7.6-3Chapter 3. Development Authority Powers and Duties

36-7.6-3-1Duties 36-7.6-3-2Powers 36-7.6-3-3Agreements for joint actions 36-7.6-3-4Reports 36-7.6-3-5Development plan

IC 36-7.6-3-1Duties Sec. 1. A development authority shall do the following:

(1) Assist in the coordination of local efforts concerning projects that are of regional importance.

(2) Assist a county, a municipality, a commuter transportation district, an airport authority, and a regional transportation authority in coordinating regional transportation and economic development efforts.

(3) Fund projects that are of regional importance, as provided in this article.

As added by P.L.232-2007, SEC.7.

IC 36-7.6-3-2Powers Sec. 2. (a) A development authority may do any of the following:

(1) Finance, improve, construct, reconstruct, renovate, purchase, lease, acquire, and equip land and projects that are of regional importance.

(2) Lease land or a project to an eligible political subdivision.

(4) Construct or reconstruct highways, roads, and bridges.

(5) Acquire land or all or a part of one (1) or more projects from an eligible political subdivision by purchase or lease and lease the land or projects back to the eligible political subdivision, with any additional improvements that may be made to the land or projects.

(6) Acquire all or a part of one (1) or more projects from an eligible political subdivision by purchase or lease to fund or refund indebtedness incurred on account of the projects to enable the eligible political subdivision to make a savings in debt service obligations or lease rental obligations or to obtain relief from covenants that the eligible political subdivision considers to be unduly burdensome.

(7) Make loans, loan guarantees, and grants or provide other financial assistance to or on behalf of the following:

(A) A commuter transportation district.

(B) An airport authority.

(C) A regional transportation authority. A loan, a loan guarantee, a grant, or other financial assistance under this clause may be used by a regional transportation authority for acquiring, improving, operating, maintaining, financing, and supporting the following:

(i) Bus services (including fixed route services and flexible or demand-responsive services) that are a component of a public transportation system.

(ii) Bus terminals, stations, or facilities or other regional bus authority projects.

(D) A county.

(E) A municipality.

(8) Provide funding to assist a railroad that is providing commuter transportation services in a county containing territory included in the development authority.

(9) Provide funding to assist an airport authority located in a county containing territory included in the development authority in the construction, reconstruction, renovation, purchase, lease, acquisition, and equipping of an airport facility or airport project.

(10) Provide funding for intermodal transportation projects and facilities.

(11) Provide funding for regional trails and greenways.

(12) Provide funding for economic development projects.

(13) Provide funding for regional transportation infrastructure projects under IC 36-9-43.

(14) Hold, use, lease, rent, purchase, acquire, and dispose of by purchase, exchange, gift, bequest, grant, condemnation (subject to subsection (d)), lease, or sublease, on the terms and conditions determined by the development authority, any real or personal property.

(15) After giving notice, enter upon any lots or lands for the purpose of surveying or examining them to determine the location of a project.

(16) Make or enter into all contracts and agreements necessary or incidental to the performance of the development authority's duties and the execution of the development authority's powers under this article.

(17) Sue, be sued, plead, and be impleaded.

(18) Design, order, contract for, construct, reconstruct, and renovate a project or improvements to a project.

(19) Appoint an executive director and employ appraisers, real estate experts, engineers, architects, surveyors, attorneys, accountants, auditors, clerks, construction managers, and any consultants or employees that are necessary or desired by the development authority in exercising its powers or carrying out its duties under this article.

(20) Accept loans, grants, and other forms of financial assistance from the federal government, the state government, a political subdivision, or any other public or private source.

(21) Use the development authority's funds to match federal grants or make loans, loan guarantees, or grants to carry out the development authority's powers and duties under this article.

(22) Except as prohibited by law, take any action necessary to carry out this article.

(b) Projects funded by a development authority must be of regional importance.

(c) If a development authority is unable to agree with the owners, lessees, or occupants of any real property selected for the purposes of this article, the development authority may (subject to subsection (d)) proceed under IC 32-24-1 to procure the condemnation of the property. The development authority may not institute a proceeding until it has adopted a resolution that:

(1) describes the real property sought to be acquired and the purpose for which the real property is to be used;

(2) declares that the public interest and necessity require the acquisition by the development authority of the property involved; and

(3) sets out any other facts that the development authority considers necessary or pertinent.

The resolution is conclusive evidence of the public necessity of the proposed acquisition.

(d) A development authority may exercise the power of eminent domain as provided in subsections (a)(14) and (c) concerning a particular property only if that exercise of the power of eminent domain is approved by:

(1) the legislative body of the municipality in which the property is located; or

(2) the legislative body of the county in which the property is located, if the property is not located within a municipality.

As added by P.L.232-2007, SEC.7. Amended by P.L.229-2017, SEC.42; P.L.178-2017, SEC.1; P.L.86-2018, SEC.351.

IC 36-7.6-3-3Agreements for joint actions Sec. 3. A development authority may enter into an agreement with another development authority or any other entity to:

(1) jointly equip, own, lease, and finance projects and facilities; or

(2) otherwise carry out the purposes of the development authority;

in any location.

As added by P.L.232-2007, SEC.7.

IC 36-7.6-3-4Reports Sec. 4. A development authority shall before April 1 of each year issue a report to the legislative council, the budget committee, the Indiana economic development corporation, and the executive of each member of the development authority concerning the operations and activities of the development authority during the preceding calendar year. The report to the legislative council must be in an electronic format under IC 5-14-6.

As added by P.L.232-2007, SEC.7. Amended by P.L.178-2015, SEC.18.

IC 36-7.6-3-5Development plan Sec. 5. (a) A development authority shall prepare a comprehensive strategic development plan that includes detailed information concerning the following:

(1) The proposed projects to be undertaken or financed by the development authority.

(2) The following information for each project included under subdivision (1):

(A) Timeline and budget.

(B) The return on investment.

(D) Any projected or expected federal matching funds.

(b) The development authority shall, not later than January 1 of the second year following the year in which the development authority is established, submit the comprehensive strategic development plan for review by the budget committee and approval by the director of the office of management and budget and the Indiana economic development corporation. However, a development authority that has already submitted its comprehensive strategic development plan as part of an application for a grant or a loan under IC 5-28-37 (before its repeal) or IC 5-28-38 (before its repeal) is not required to resubmit its comprehensive strategic development plan under this subsection.

As added by P.L.232-2007, SEC.7. Amended by P.L.178-2015, SEC.19; P.L.237-2017, SEC.48; P.L.165-2021, SEC.214.

IC 36-7.6-4Chapter 4. Financing; Issuance of Bonds; Leases

36-7.6-4-1Development authority fund; accounts; debt service 36-7.6-4-2Revenue transfers to fund 36-7.6-4-3Bond issues 36-7.6-4-4Bonding; complete authority 36-7.6-4-5Bonding; security; trust indenture 36-7.6-4-6Bond refunding; leases 36-7.6-4-7Leases; findings 36-7.6-4-8Leases; complete authority 36-7.6-4-9Plan approval 36-7.6-4-10Agreements; common wall; easements; licenses 36-7.6-4-11Leases or sale of projects or land to development authorities 36-7.6-4-12Option to purchase property 36-7.6-4-13Tax exemption 36-7.6-4-14Bonds; legal investments 36-7.6-4-15Bonds; contesting validity 36-7.6-4-16Transfers; failure to make transfer; duty of state treasurer 36-7.6-4-17Covenants

IC 36-7.6-4-1Development authority fund; accounts; debt service Sec. 1. (a) A development board shall establish and administer a development authority fund.

(b) A development authority fund consists of the following:

(1) Amounts transferred under section 2 of this chapter by each county and municipality that is a member of the development authority.

(2) Amounts transferred to the fund by each county or municipality that is a member of the development authority, including any payments required under an interlocal agreement entered into under section 3(h) of this chapter. The transfers allowed by this subdivision may be made from any local revenue of the county or municipality, including property tax revenue, distributions, incentive payments, money deposited in the county's or municipality's local major moves construction fund under IC 8-14-16, money received by the county or municipality under a development agreement (as defined by IC 36-1-8-9.5), or any other local revenue that is not otherwise restricted by law or committed for the payment of other obligations.

(3) Appropriations, grants, or other distributions made to the fund by the state.

(4) Money received from the federal government.

(5) Gifts, contributions, donations, and private grants made to the fund.

(c) On the date a development authority issues bonds for any purpose under this article, which are secured in whole or in part by the development authority fund, the development board shall establish and administer two (2) accounts within the development authority fund. The accounts must be the general account and the lease rental account. After the accounts are established, all money transferred to the development authority fund under subsection (b)(1) shall be deposited in the lease rental account and used only for the payment of or to secure the payment of obligations of an eligible political subdivision under a lease entered into by the eligible political subdivision and the development authority under this chapter. However, any money deposited in the lease rental account and not used for the purposes of this subsection shall be returned by the secretary-treasurer of the development authority to the unit that contributed the money to the development authority.

(d) Notwithstanding subsection (c), if the amount of all money transferred to a development authority fund under subsection (b)(1) for deposit in the lease rental account in any one (1) calendar year is greater than an amount equal to the product of:

(1) one and twenty-five hundredths (1.25); multiplied by

then all or a part of the excess may instead be deposited in the general account.

(e) All other money and revenue of a development authority may be deposited in the general account or the lease rental account at the discretion of the development board. Money on deposit in the lease rental account may be used only to make rental payments on leases entered into by the development authority under this article. Money on deposit in the general account may be used for any purpose authorized by this article.

(f) A development authority fund shall be administered by the development authority that established the development authority fund.

(g) Money in a development authority fund shall be used by the development authority to carry out this article and does not revert to any other fund.

As added by P.L.232-2007, SEC.7. Amended by P.L.178-2015, SEC.20.

IC 36-7.6-4-2Revenue transfers to fund Sec. 2. (a) This section applies only to a development authority and its member counties and municipalities to the extent necessary to make required payments and maintain a required reserve for debt obligations or leases that were issued or entered into by the development authority before May 1, 2015.

(b) Beginning January 1 of the year following the year in which a development authority is established, the fiscal officer of each county and each municipality that is a member of the development authority shall transfer the amount determined under subsection (c) to the development authority for deposit in the development authority fund.

(c) The amount of the transfer required each year by subsection (b) from each county and each municipality is equal to the following:

(1) Except as provided in subdivision (2), the amount that would be distributed to the county or the municipality as certified distributions of local income tax revenue raised from a local income tax rate of five-hundredths of one percent (0.05%) in the county that is dedicated to economic development purposes under IC 6-3.6-6.

(2) In the case of a county or municipality that becomes a member of a development authority after June 30, 2011, and before July 1, 2013, the amount that would be distributed to the county or municipality as certified distributions of local income tax revenue raised from a local income tax rate of twenty-five thousandths of one percent (0.025%) in the county that is dedicated to economic development purposes under IC 6-3.6-6.

(d) Notwithstanding subsection (c), if the additional local income tax rate permitted under IC 6-3.6-7-24 is in effect in a county, the obligations of the county and each municipality in the county under this section are satisfied by the transfer to the development fund of all local income tax revenue derived from the additional tax and deposited in the county regional development authority fund.

(e) The following apply to the transfers required by this section:

(1) The transfers shall be made without appropriation by the fiscal body of the county or the fiscal body of the municipality.

(2) Except as provided in subdivision (3), the fiscal officer of each county and each municipality that is a member of the development authority shall transfer twenty-five percent (25%) of the total transfers due for the year before the last business day of January, April, July, and October of each year.

(3) Local income tax revenue derived from the additional local income tax rate permitted under IC 6-3.6-7-24 must be transferred to the development fund not more than thirty (30) days after being deposited in the county regional development fund.

(4) This subdivision does not apply to a county in which the additional local income tax rate permitted under IC 6-3.6-7-24 has been imposed or to any municipality in the county. The transfers required by this section may be made from any local revenue (other than property tax revenue) of the county or municipality, including excise tax revenue, local income tax revenue, riverboat tax revenue, distributions, incentive payments, or money deposited in the county's or municipality's local major moves construction fund under IC 8-14-16.

As added by P.L.232-2007, SEC.7. Amended by P.L.172-2011, SEC.158; P.L.178-2015, SEC.21; P.L.197-2016, SEC.145.

IC 36-7.6-4-3Bond issues Sec. 3. (a) A development authority may issue bonds for the purpose of obtaining money to pay the cost of:

(1) acquiring real or personal property, including existing capital improvements;

(2) acquiring, constructing, improving, reconstructing, or renovating one (1) or more projects; or

(3) funding or refunding bonds issued under this chapter, IC 8-5-15, IC 8-22-3, IC 36-9-3, or prior law.

(b) The bonds are payable solely from:

(1) the lease rentals from the lease of the projects for which the bonds were issued, insurance proceeds, and any other funds pledged or available; and

(2) except as otherwise provided by law, revenue received by the development authority and amounts deposited in the development authority fund.

(c) The bonds must be authorized by a resolution of the development board of the development authority that issues the bonds.

(d) The terms and form of the bonds must either be set out in the resolution or in a form of trust indenture approved by the resolution.

(e) The bonds must mature within forty (40) years.

(f) A development board shall sell the bonds only to the Indiana bond bank established by IC 5-1.5-2-1 upon the terms determined by the development board and the Indiana bond bank.

(1) planning and development of equipment or a facility and all buildings, facilities, structures, equipment, and improvements related to the facility;

(2) acquisition of a site and clearing and preparing the site for construction;

(3) equipment, facilities, structures, and improvements that are necessary or desirable to make the project suitable for use and operations;

(4) architectural, engineering, consultant, and attorney's fees;

(5) incidental expenses in connection with the issuance and sale of bonds;

(6) reserves for principal and interest;

(7) interest during construction;

(8) financial advisory fees;

(9) insurance during construction;

(10) municipal bond insurance, debt service reserve insurance, letters of credit, or other credit enhancement; and

(11) in the case of refunding or refinancing, payment of the principal of, redemption premiums (if any) for, and interest on the bonds being refunded or refinanced.

(h) A development authority may not issue bonds under this article or otherwise finance debt unless:

(1) the development authority enters into an interlocal agreement with each member that is committing funds to a project to be supported by the bonds; and

(2) the fiscal body of each member that is committing funds to the project to be supported by the bonds approves the agreement described in subdivision (1) by ordinance.

As added by P.L.232-2007, SEC.7. Amended by P.L.178-2015, SEC.22; P.L.252-2015, SEC.51; P.L.178-2015, SEC.23.

IC 36-7.6-4-4Bonding; complete authority Sec. 4. This chapter contains full and complete authority for the issuance of bonds. No law, procedure, proceedings, publications, notices, consents, approvals, orders, or acts by a development board or any other officer, department, agency, or instrumentality of the state or of any political subdivision is required to issue any bonds, except as prescribed in this article.

As added by P.L.232-2007, SEC.7.

IC 36-7.6-4-5Bonding; security; trust indenture Sec. 5. (a) A development authority may secure bonds issued under this chapter by a trust indenture between the development authority and a corporate trustee, which may be any trust company or national or state bank in Indiana that has trust powers.

(b) The trust indenture may:

(1) pledge or assign revenue received by the development authority, amounts deposited in the development authority fund, and lease rentals, receipts, and income from leased projects, but may not mortgage land or projects;

(3) set forth the rights and remedies of bondholders and trustees; and

(4) restrict the individual right of action of bondholders.

As added by P.L.232-2007, SEC.7.

IC 36-7.6-4-6Bond refunding; leases Sec. 6. (a) Bonds issued under IC 8-5-15, IC 8-22-3, IC 36-9-3, or prior law may be refunded as provided in this section.

(b) An eligible political subdivision may:

(1) lease all or a part of land or a project or projects to a development authority, which may be at a nominal lease rental with a lease back to the eligible political subdivision, conditioned upon the development authority assuming bonds issued under IC 8-5-15, IC 8-22-3, IC 36-9-3, or prior law and issuing its bonds to refund those bonds; and

(2) sell all or a part of land or a project or projects to a development authority for a price sufficient to provide for the refunding of those bonds and lease back the land or project or projects from the development authority.

As added by P.L.232-2007, SEC.7.

IC 36-7.6-4-7Leases; findings Sec. 7. (a) Before a lease may be entered into by an eligible political subdivision under this chapter, the eligible political subdivision must find that the lease rental provided for is fair and reasonable.

(b) A lease of land or a project from a development authority to an eligible political subdivision:

(1) may not have a term exceeding forty (40) years;

(3) may contain provisions:

(B) requiring payment of lease rentals for land, for an existing project being used, reconstructed, or renovated, or for any other existing project;

(4) may contain an option to renew the lease for the same or a shorter term on the conditions provided in the lease;

(6) may be entered into before acquisition or construction of a project;

(7) may provide that the eligible political subdivision shall agree to:

(A) pay any taxes and assessments on the project;

(B) maintain insurance on the project for the benefit of the development authority;

(D) pay a deposit or series of deposits to the development authority from any funds available to the eligible political subdivision before the commencement of the lease to secure the performance of the eligible political subdivision's obligations under the lease; and

(8) must provide that the lease rental payments by the eligible political subdivision shall be made from the development authority fund established under section 1 of this chapter and may provide that the lease rental payments by the eligible political subdivision shall be made from:

(A) net revenues of the project;

(B) any other funds available to the eligible political subdivision; or

As added by P.L.232-2007, SEC.7.

IC 36-7.6-4-8Leases; complete authority Sec. 8. This chapter contains full and complete authority for leases between a development authority and an eligible political subdivision. No law, procedure, proceedings, publications, notices, consents, approvals, orders, or acts by a development authority or the eligible political subdivision or any other officer, department, agency, or instrumentality of the state or any political subdivision is required to enter into any lease, except as prescribed in this article.

As added by P.L.232-2007, SEC.7.

IC 36-7.6-4-9Plan approval Sec. 9. If the lease provides for a project or improvements to a project to be constructed by a development authority, the plans and specifications shall be submitted to and approved by all agencies designated by law to pass on plans and specifications for public buildings.

As added by P.L.232-2007, SEC.7.

IC 36-7.6-4-10Agreements; common wall; easements; licenses Sec. 10. A development authority and an eligible political subdivision may enter into common wall (party wall) agreements or other agreements concerning easements or licenses. These agreements shall be recorded with the recorder of the county in which the project is located.

As added by P.L.232-2007, SEC.7.

IC 36-7.6-4-11Leases or sale of projects or land to development authorities Sec. 11. (a) An eligible political subdivision may lease for a nominal lease rental, or sell to a development authority, one (1) or more projects or parts of a project or land on which a project is located or is to be constructed.

(b) Any lease of all or a part of a project by an eligible political subdivision to a development authority must be for a term equal to the term of the lease of that project back to the eligible political subdivision.

(c) An eligible political subdivision may sell property to a development authority for the amount the eligible political subdivision determines to be in the best interest of the eligible political subdivision. The development authority may pay that amount from the proceeds of bonds of the development authority.

As added by P.L.232-2007, SEC.7.

IC 36-7.6-4-12Option to purchase property Sec. 12. If an eligible political subdivision exercises its option to purchase leased property, the eligible political subdivision may issue its bonds as authorized by statute.

As added by P.L.232-2007, SEC.7.

IC 36-7.6-4-13Tax exemption Sec. 13. (a) All:

(1) property owned by a development authority;

(2) revenue of a development authority; and

(3) bonds issued by a development authority, the interest on the bonds, the proceeds received by a holder from the sale of bonds to the extent of the holder's cost of acquisition, proceeds received upon redemption before maturity, proceeds received at maturity, and the receipt of interest in proceeds;

are exempt from taxation in Indiana for all purposes except the financial institutions tax imposed under IC 6-5.5.

(b) All securities issued under this chapter are exempt from the registration requirements of IC 23-19 and other securities registration statutes.

As added by P.L.232-2007, SEC.7. Amended by P.L.1-2009, SEC.169; P.L.79-2017, SEC.85.

IC 36-7.6-4-14Bonds; legal investments Sec. 14. Bonds issued under this chapter are legal investments for private trust funds and the funds of banks, trust companies, insurance companies, building and loan associates, credit unions, savings banks, private banks, loan and trust and safe deposit companies, rural loan and savings associations, guaranty loan and savings associations, mortgage guaranty companies, small loan companies, industrial loan and investment companies, and other financial institutions organized under Indiana law.

As added by P.L.232-2007, SEC.7.

IC 36-7.6-4-15Bonds; contesting validity Sec. 15. An action to contest the validity of bonds to be issued under this chapter may not be brought after the time limitations set forth in IC 5-1-14-13.

As added by P.L.232-2007, SEC.7.

IC 36-7.6-4-16Transfers; failure to make transfer; duty of state treasurer Sec. 16. (a) This section applies if the county or municipality fails to make a transfer or part of a transfer required by:

(1) section 2 of this chapter; or

(2) an interlocal agreement executed under section 3(h) of this chapter that is required to satisfy the county's or municipality's obligation to contribute to the satisfaction of outstanding bonds or other debt of the development authority.

(b) The treasurer of state shall do the following:

(1) Withhold an amount equal to the amount of the transfer or part of the transfer under section 2 of this chapter that the county or municipality failed to make from money in the possession of the state that would otherwise be available for distribution to the county or municipality under any other law.

(2) Pay the amount withheld under subdivision (1) to the development authority to satisfy the county's or municipality's obligations to the development authority.

As added by P.L.232-2007, SEC.7. Amended by P.L.146-2008, SEC.775; P.L.178-2015, SEC.24.

IC 36-7.6-4-17Covenants Sec. 17. (a) If there are bonds outstanding that have been issued under this article by a development authority and are not secured by a lease, or if there are leases in effect under this article, the general assembly covenants that it will not reduce the amount required to be transferred under section 2 of this chapter from a county or municipality that is a member of a development authority to the development authority below an amount that would produce one and twenty-five hundredths (1.25) multiplied by the total of the highest annual debt service on the bonds to their final maturity plus the highest annual lease payments on the leases to their final termination date.

(b) The general assembly also covenants that it will not:

(1) repeal or amend this article in a manner that would adversely affect owners of outstanding bonds, or the payment of lease rentals, secured by the amounts pledged under this chapter; or

(2) in any way impair the rights of owners of bonds of a development authority, or the owners of bonds secured by lease rentals, secured by a pledge of revenues under this chapter;

except as otherwise set forth in subsection (a).

As added by P.L.232-2007, SEC.7.

IC 36-7.7ARTICLE 7.7. CENTRAL INDIANA REGIONAL DEVELOPMENT AUTHORITY

Ch. 1.Applicability Ch. 2.Definitions Ch. 3.Development Authority and Board Ch. 4.Compliance and Audit Requirements Ch. 5.Development Authority Powers and Duties Ch. 6.Regional Strategy Fund

IC 36-7.7-1Chapter 1. Applicability

36-7.7-1-1Application of article 36-7.7-1-2Repealed

IC 36-7.7-1-1Application of article Sec. 1. This article applies only to eligible political subdivisions described in IC 36-7.7-2-7 that are located in the Indianapolis-Carmel-Anderson Metropolitan Statistical Area as defined by the United States Census Bureau.

As added by P.L.83-2020, SEC.2.

IC 36-7.7-1-2RepealedAs added by P.L.83-2020, SEC.2. Repealed by P.L.145-2025, SEC.21.

IC 36-7.7-2Chapter 2. Definitions

36-7.7-2-1Application of definitions 36-7.7-2-2"Airport authority" 36-7.7-2-3"Commuter transportation district" 36-7.7-2-4"Comprehensive development plan" 36-7.7-2-5"Development authority" 36-7.7-2-6"Economic development project" 36-7.7-2-7"Eligible political subdivision" 36-7.7-2-8"Strategy committee" 36-7.7-2-9"Preliminary development plan" 36-7.7-2-10"Regional transportation authority"

IC 36-7.7-2-1Application of definitions Sec. 1. Except as otherwise provided, the definitions in this chapter apply throughout this article.

As added by P.L.83-2020, SEC.2.

IC 36-7.7-2-2"Airport authority" Sec. 2. "Airport authority" refers to an airport authority established under IC 8-22-3.

As added by P.L.83-2020, SEC.2.

IC 36-7.7-2-3"Commuter transportation district" Sec. 3. "Commuter transportation district" refers to a commuter transportation district established under IC 8-5-15.

As added by P.L.83-2020, SEC.2.

IC 36-7.7-2-4"Comprehensive development plan" Sec. 4. "Comprehensive development plan" refers to a comprehensive strategic economic development plan prepared under IC 36-7.7-3-4.

As added by P.L.83-2020, SEC.2.

IC 36-7.7-2-5"Development authority" Sec. 5. "Development authority" refers to the central Indiana regional development authority established under IC 36-7.7-3-1.

As added by P.L.83-2020, SEC.2.

IC 36-7.7-2-6"Economic development project" Sec. 6. "Economic development project" means an economic development project described in IC 6-3.6-2-8.

As added by P.L.83-2020, SEC.2.

IC 36-7.7-2-7"Eligible political subdivision" Sec. 7. "Eligible political subdivision" means any of the following:

(1) A county.

(2) A municipality.

(3) An airport authority.

(4) A commuter transportation district.

(5) A regional transportation authority.

(6) A public transportation corporation under IC 36-9-4.

As added by P.L.83-2020, SEC.2.

IC 36-7.7-2-8"Strategy committee" Sec. 8. "Strategy committee" refers to the strategy committee composed of members selected according to the terms of the preliminary development plan.

As added by P.L.83-2020, SEC.2.

IC 36-7.7-2-9"Preliminary development plan" Sec. 9. "Preliminary development plan" means a preliminary strategic economic development plan prepared under IC 36-7.7-3-3.

As added by P.L.83-2020, SEC.2.

IC 36-7.7-2-10"Regional transportation authority" Sec. 10. "Regional transportation authority" means a regional transportation authority established under IC 36-9-3.

As added by P.L.83-2020, SEC.2.

IC 36-7.7-3Chapter 3. Development Authority and Board

36-7.7-3-1Establishment; members 36-7.7-3-2Purposes 36-7.7-3-3Preliminary strategic economic development plan 36-7.7-3-4Comprehensive strategic economic development plan; contents 36-7.7-3-5Strategy committee; members; compensation 36-7.7-3-6Chair; officers 36-7.7-3-7Meetings; quorum; affirmative votes 36-7.7-3-8Bylaws and rules 36-7.7-3-9Membership 36-7.7-3-10Membership term

IC 36-7.7-3-1Establishment; members Sec. 1. (a) In order to establish a development authority under this article, the fiscal bodies of a combination of any two (2) or more counties or municipalities described in subsection (b) must adopt substantially similar resolutions to adopt a preliminary development plan prepared under section 3 of this chapter for the development authority.

(b) A development authority may be established by any of the following:

(1) One (1) or more counties and one (1) or more adjacent counties.

(2) One (1) or more counties and one (1) or more municipalities in adjacent counties.

(3) One (1) or more municipalities and one (1) or more municipalities in adjacent counties.

(c) If a development authority is established under subsection (a), the development authority shall promptly notify the Indiana economic development corporation of the establishment of the development authority by submitting a copy of the preliminary development plan to the Indiana economic development corporation.

(d) When a county establishes a development authority under subsection (a) with another unit, any municipality in the county does not also become a member of the development authority, unless the fiscal body of the municipality also adopts the preliminary development plan prepared under section 3 of this chapter for the development authority.

(e) A county or municipality may become a member of the development authority under this section only if the county or municipality is not a member of a development authority under IC 36-7.6. If a county or municipality is a member of another development authority established under IC 36-7.6, the county or municipality must withdraw its membership in that development authority before the county's or municipality's adoption of a preliminary development plan under subsection (a). A county or municipality may be a member of only one (1) development authority.

(f) If not already members, Marion County and the city of Indianapolis are required to join the central Indiana regional development authority if sixty percent (60%) or more of the eligible political subdivisions located within the Indianapolis-Carmel-Anderson Metropolitan Statistical Area as defined by the United States Census Bureau become members of the central Indiana regional development authority. If Marion County and the city of Indianapolis are required to become members of the central Indiana regional development authority under this subsection, Marion County and the city of Indianapolis do not incur any financial obligation because of the fact they have become members of the central Indiana regional development authority. Marion County or the city of Indianapolis can incur a financial obligation in relation to the central Indiana regional development authority only by voluntarily entering into an agreement to undertake the financial obligation.

(g) Notwithstanding any other law, any of the following governmental units may immediately withdraw from the development authority to which they belong in order to join the central Indiana regional development authority:

(1) The city of Westfield.

(2) The city of Carmel.

(3) The city of Greenwood.

(4) Marion County.

As added by P.L.83-2020, SEC.2.

IC 36-7.7-3-2Purposes Sec. 2. A development authority established under this chapter is a separate body corporate and politic that shall carry out the purposes of this article by:

(1) acquiring, constructing, equipping, owning, and financing projects and facilities to or for the benefit of eligible political subdivisions under this article; and

(2) funding and developing:

(A) airport authority projects;

(B) commuter transportation district and other rail projects and services;

(D) economic development projects;

(E) intermodal transportation projects;

(F) regional trail or greenway projects;

(G) regional transportation infrastructure projects under IC 36-9-43; and

(H) any other capital infrastructure project that enhances the region with the goal of attracting people or business;

that are of regional importance.

As added by P.L.83-2020, SEC.2.

IC 36-7.7-3-3Preliminary strategic economic development plan Sec. 3. Units that wish to establish a development authority under this chapter must prepare and adopt a preliminary strategic economic development plan that includes provisions and general information concerning the following:

(1) The participating members of the development authority.

(2) The membership of the strategy committee under section 5 of this chapter.

(3) A timeline for submitting the comprehensive development plan under section 4 of this chapter.

(4) A strategy for attracting (or any projected) investments, grants, matching funds, or local tax revenue.

As added by P.L.83-2020, SEC.2.

IC 36-7.7-3-4Comprehensive strategic economic development plan; contents Sec. 4. (a) A development authority established under this chapter shall prepare a comprehensive strategic economic development plan to serve as a roadmap to diversify and strengthen the regional economy, establish regional goals and objectives, develop and implement a regional action plan, identify ways to eliminate duplicative government services within the region, and identify investment priorities and funding sources.

(b) The comprehensive development plan must incorporate and comply with the requirements and content for comprehensive economic development strategies under 13 CFR 303.7 and be developed with broad based and diverse community participation, and may contain the following:

(1) An analysis of economic and community development problems and opportunities including incorporation of any relevant material or suggestions from other government sponsored or supported plans.

(2) A background and history of the economic development situation of the region, with a discussion of the economy, including as appropriate, geography, population, labor force, resources, and the environment.

(3) A discussion of community participation in the planning efforts.

(4) Identification of particular strengths or assets that can be leveraged for economic benefit and goals and objectives for taking advantage of those strengths and assets to solve the economic development problems of the region.

(5) A plan of action, including suggested projects, to achieve the goals and objectives.

(6) Performance measures to be used to evaluate whether and to what extent goals and objectives have been or are being met.

(7) Strategies for:

(A) ensuring access to affordable health care;

(B) ensuring access to affordable child care;

(D) recreation and entertainment;

(E) coordinating with local businesses to ensure the supply of high technology or high demand job apprenticeships;

(F) leveraging technology to improve delivery of government services;

(G) eliminating duplicative government services within the region;

(H) increasing the supply of affordable homes and other housing;

(I) building connectivity between the business community and local schools;

(J) incentivizing or attracting out-of-state residents and businesses to relocate to the region; and

(K) branding and marketing the region as a means to recruit and retain businesses and people.

(8) Data analyses of other workforce and quality of place measures including, without limitation, detailed information for the most recent three (3) year period for which data is available for the following:

(A) Workforce availability compared to job postings.

(B) Commercial and industrial electricity prices.

(D) Access to fixed broadband and mobile connectivity meeting Federal Communications Commission standards for businesses and residents.

(E) Total employment in firms that are zero (0) to five (5) years old.

(F) Net job creation in firms that are zero (0) to five (5) years old.

(G) Net job creation in firms that are more than five (5) years old.

(H) Venture capital invested.

(I) Summary of the region's health related metrics including the following:

(i) Adult smoking rate.

(ii) Adult obesity rate.

(iii) Drug related deaths.

(9) The proposed projects and programs to be undertaken or financed by the development authority.

(10) The following information for each project and program included under subdivision (9):

(A) Timeline and budget.

(B) The return on investment.

(D) Any projected or expected federal matching funds.

As added by P.L.83-2020, SEC.2.

IC 36-7.7-3-5Strategy committee; members; compensation Sec. 5. (a) A development authority established under this chapter is governed by a strategy committee.

(b) A strategy committee is composed of members according to the terms of the preliminary development plan adopted by the fiscal bodies of development authority members under section 1 of this chapter.

(c) The removal of a member and the filling of a vacancy on the strategy committee shall be made according to the terms of the development authority preliminary development plan.

(d) Each member of a strategy committee, before entering upon the duties of office, must take and subscribe an oath of office under IC 5-4-1, which shall be endorsed upon the certificate of appointment and filed with the records of the investment board.

(e) A member of a strategy committee is not entitled to receive any compensation for performance of the member's duties.

As added by P.L.83-2020, SEC.2.

IC 36-7.7-3-6Chair; officers Sec. 6. (a) In January of each year, a strategy committee shall hold an organizational meeting at which the strategy committee shall elect the following officers from the members of the strategy committee:

(1) A chair.

(2) A vice chair.

(3) A secretary-treasurer.

(b) The affirmative vote of at least a majority of the members of the strategy committee is necessary to elect an officer under subsection (a).

(c) An officer elected under subsection (a) serves from the date of the officer's election until the officer's successor is elected and qualified.

As added by P.L.83-2020, SEC.2.

IC 36-7.7-3-7Meetings; quorum; affirmative votes Sec. 7. (a) A strategy committee shall meet at least quarterly.

(b) The chair of a strategy committee or any two (2) members of a strategy committee may call a special meeting of the strategy committee.

(d) The affirmative votes of at least a majority of the appointed members of a strategy committee are necessary to authorize any action of the strategy committee.

As added by P.L.83-2020, SEC.2.

IC 36-7.7-3-8Bylaws and rules Sec. 8. A strategy committee shall adopt the bylaws and rules that the strategy committee considers necessary for the proper conduct of the strategy committee's duties and the safeguarding of the development authority's funds and property.

As added by P.L.83-2020, SEC.2.

IC 36-7.7-3-9Membership Sec. 9. (a) Only one (1) development authority may be established under this article. However, a county or municipality described in subsection (b) may join a development authority established under section 1 of this chapter if the fiscal body of the county or municipality:

(1) adopts an ordinance authorizing the county or municipality to become a member of the development authority; and

(2) adopts a substantially similar resolution to adopt the preliminary development plan of the development authority as set forth under section 1 of this chapter.

A development authority shall notify the Indiana economic development corporation promptly in writing when a new member joins the development authority.

(b) The following counties or municipalities may join a development authority established under section 1 of this chapter:

(1) In the case of a county, a county that is adjacent to a county that:

(A) is a member of the development authority; or

(B) contains a member of the development authority.

(2) In the case of a municipality, a municipality that is located in a county that:

(A) is a member of the development authority;

(B) is adjacent to a county that is a member of the development authority; or

As added by P.L.83-2020, SEC.2.

IC 36-7.7-3-10Membership term Sec. 10. A county or municipality that establishes or joins a development authority under this chapter shall be a member of the development authority for not less than five (5) years or until the expiration of this article.

As added by P.L.83-2020, SEC.2.

IC 36-7.7-4Chapter 4. Compliance and Audit Requirements

36-7.7-4-1Public purchasing and public works project laws apply; goals for participation 36-7.7-4-2Annual financial audit

IC 36-7.7-4-1Public purchasing and public works project laws apply; goals for participation Sec. 1. (a) A development authority shall comply with IC 5-22 (public purchasing), IC 36-1-12 (public work projects), and any applicable federal bidding statutes and regulations. An eligible political subdivision that receives a loan, a grant, or other financial assistance from a development authority or enters into a lease with a development authority must comply with applicable federal, state, and local public purchasing and bidding laws and regulations. However, a purchasing agency (as defined in IC 5-22-2-25) of an eligible political subdivision may:

(1) assign or sell a lease for property to a development authority; or

(2) enter into a lease for property with a development authority;

at any price and under any other terms and conditions as may be determined by the eligible political subdivision and the development authority. However, before making an assignment or a sale of a lease or entering into a lease under this section that would otherwise be subject to IC 5-22, the eligible political subdivision or its purchasing agent must obtain or cause to be obtained a purchase price for the property to be subject to the lease from the lowest responsible and responsive bidder in accordance with the requirements for the purchase of supplies under IC 5-22.

(1) the participation goals established by the counties and municipalities that are members of the development authority; and

(2) the goals of delivering the project on time and within the budgeted amount and, insofar as possible, using Indiana businesses for employees, goods, and services.

As added by P.L.83-2020, SEC.2.

IC 36-7.7-4-2Annual financial audit Sec. 2. (a) The state board of accounts shall, pursuant to IC 5-11-1-7 and IC 5-11-1-24, allow each development authority to contract with a certified public accountant for an annual financial audit of the development authority. The certified public accountant may not have a significant financial interest in a project, facility, or service funded by or leased by or to any development authority. The certified public accountant selected by a development authority must be approved by the state examiner and is subject to the direction of the state examiner while performing an annual financial audit under this article.

(c) A development authority shall pay the cost of the annual financial audit under subsection (a). In addition, the state board of accounts may at any time conduct an audit of any phase of the operations of a development authority. The development authority shall pay the cost of any audit by the state board of accounts.

As added by P.L.83-2020, SEC.2.

IC 36-7.7-5Chapter 5. Development Authority Powers and Duties

36-7.7-5-1Duties 36-7.7-5-2Powers 36-7.7-5-3Agreement with another development authority or entity 36-7.7-5-4Reports

IC 36-7.7-5-1Duties Sec. 1. A development authority shall do the following:

(1) Assist in the coordination of local efforts concerning projects that are of regional importance.

(3) Fund projects that are of regional importance, as provided in this article.

As added by P.L.83-2020, SEC.2.

IC 36-7.7-5-2Powers Sec. 2. (a) A development authority may do any of the following:

(1) Finance, improve, construct, reconstruct, renovate, purchase, acquire, and equip land and projects that are of regional importance.

(2) Finance and construct additional improvements to projects or other capital improvements owned by the development authority.

(3) Construct or reconstruct highways, roads, and bridges.

(4) Acquire land or all or a part of one (1) or more projects from an eligible political subdivision by purchase.

(5) Acquire all or a part of one (1) or more projects from an eligible political subdivision by purchase to fund or refund indebtedness incurred on account of the projects to enable the eligible political subdivision to make a savings in debt service obligations or lease rental obligations or to obtain relief from covenants that the eligible political subdivision considers to be unduly burdensome.

(6) Make grants or provide other financial assistance to or on behalf of the following:

(A) A commuter transportation district.

(B) An airport authority.

(i) Bus services (including fixed route services and flexible or demand-responsive services) that are a component of a public transportation system.

(ii) Bus terminals, stations, or facilities or other regional bus authority projects.

(D) A county.

(E) A municipality.

(7) Provide funding to assist a railroad that is providing commuter transportation services in a county containing territory included in the development authority.

(8) Provide funding to assist an airport authority located in a county containing territory included in the development authority in the construction, reconstruction, renovation, purchase, lease, acquisition, and equipping of an airport facility or airport project.

(9) Provide funding for intermodal transportation projects and facilities.

(10) Provide funding for regional trails and greenways.

(11) Provide funding for economic development projects.

(12) Provide funding for regional transportation infrastructure projects under IC 36-9-43.

(13) Hold, use, lease, rent, purchase, acquire, and dispose of by purchase, exchange, gift, bequest, grant, condemnation, lease, or sublease, on the terms and conditions determined by the development authority, any real or personal property.

(14) After giving notice, enter upon any lots or lands for the purpose of surveying or examining them to determine the location of a project.

(15) Make or enter into all contracts and agreements necessary or incidental to the performance of the development authority's duties and the execution of the development authority's powers under this article.

(16) Sue, be sued, plead, and be impleaded.

(17) Design, order, contract for, construct, reconstruct, and renovate a project or improvements to a project.

(18) Appoint an executive director and employ appraisers, real estate experts, engineers, architects, surveyors, attorneys, accountants, auditors, clerks, construction managers, and any consultants or employees who are necessary or desired by the development authority in exercising its powers or carrying out its duties under this article.

(19) Accept loans, grants, and other forms of financial assistance from the federal government, the state government, a political subdivision, or any other public or private source.

(20) Use the development authority's funds to match federal grants or make loans, loan guarantees, or grants to carry out the development authority's powers and duties under this article.

(21) Except as prohibited by law, take any action necessary to carry out this article.

(b) Projects funded by a development authority must be of regional importance.

As added by P.L.83-2020, SEC.2.

IC 36-7.7-5-3Agreement with another development authority or entity Sec. 3. A development authority may enter into an agreement with another development authority or any other entity to:

(1) jointly equip, own, lease, and finance projects and facilities; or

(2) otherwise carry out the purposes of the development authority;

in any location.

As added by P.L.83-2020, SEC.2.

IC 36-7.7-5-4Reports Sec. 4. A development authority shall, before April 1 of each year, issue a report to the legislative council, the budget committee, the Indiana economic development corporation, and the executive, fiscal body, and legislative body of each member of the development authority concerning the operations and activities of the development authority during the preceding calendar year. The report to the legislative council must be in an electronic format under IC 5-14-6.

As added by P.L.83-2020, SEC.2.

IC 36-7.7-6Chapter 6. Regional Strategy Fund

36-7.7-6-1Regional strategy fund 36-7.7-6-2Agreements with an eligible political subdivision 36-7.7-6-3Tax exemption

IC 36-7.7-6-1Regional strategy fund Sec. 1. (a) A strategy committee shall establish and administer a regional strategy fund.

(b) A regional strategy fund consists of the following:

(1) Any payments required under an interlocal agreement for a project that specifically states:

(A) the amount for which each member is responsible; and

(B) the term of the agreement.

The transfers allowed by this subdivision may be made from any local revenue of the county or municipality, including property tax revenue, distributions, incentive payments, money deposited in the county's or municipality's local major moves construction fund under IC 8-14-16, money received by the county or municipality under a development agreement (as defined by IC 36-1-8-9.5), or any other local revenue that is not otherwise restricted by law or committed for the payment of other obligations.

(2) Money received from the federal government.

(3) Gifts, contributions, donations, and private grants made to the fund.

(4) Money transferred to the development authority under an interlocal agreement.

As added by P.L.83-2020, SEC.2.

IC 36-7.7-6-2Agreements with an eligible political subdivision Sec. 2. A development authority and an eligible political subdivision may enter into common wall (party wall) agreements or other agreements concerning easements or licenses. These agreements shall be recorded with the recorder of the county in which the project is located.

As added by P.L.83-2020, SEC.2.

IC 36-7.7-6-3Tax exemption Sec. 3. (a) All:

(1) property owned by a development authority; and

(2) revenue of a development authority;

are exempt from taxation in Indiana for all purposes except the financial institutions tax imposed under IC 6-5.5.

(b) All securities issued under this chapter are exempt from the registration requirements of IC 23-19 and other securities registration statutes.

As added by P.L.83-2020, SEC.2.

IC 36-8ARTICLE 8. PUBLIC SAFETY

Ch. 1.Definitions Ch. 2.General Powers Concerning Public Safety Ch. 2.1.Rights of Public Safety Officers Ch. 2.2.Firefighter Representation Ch. 2.5.Critical Incident Stress Management Services Ch. 3.Safety Boards; Disciplinary Procedures Ch. 3.2.Employment Standards for Public Safety Officers Ch. 3.5.Police and Fire Merit Systems Ch. 4.Police and Fire Employment Policies in Cities Ch. 4.3.Police and Fire Employment Policies in Special Service Districts Ch. 4.5.Town Police and Fire Employment Policies Ch. 4.7.Employment of Veterans as Public Safety Officers Ch. 5.Police and Fire Leaves of Absence Ch. 6.1925 Police Pension Fund Ch. 7.1937 Firefighters' Pension Fund Ch. 7.5.1953 Police Pension Fund (Indianapolis) Ch. 8.1977 Police Officers' and Firefighters' Pension and Disability Fund Ch. 8.3.Impairment Determination for Mental Illness Ch. 8.5.Deferred Retirement Option Plan (DROP) Ch. 9.Town Board of Metropolitan Police Commissioners Ch. 10.Sheriff's Department; Merit Board; Pensions Ch. 10.5.Minimum Training Requirements for Firefighters Ch. 10.6.Fire Chief Executive Training Program Ch. 10.7.Use of Firefighting Foam Containing PFAS Chemicals Ch. 11.Fire Protection Districts Ch. 12.Volunteer Fire Departments Ch. 12.2.Hazardous Materials Emergency Action Reimbursement Ch. 12.5.Repealed Ch. 13.Township Fire Protection and Emergency Services Ch. 13.5.Township Fire Department Employment Policies Ch. 14.Cumulative Firefighting Building and Equipment Fund Ch. 15.Public Safety Communications Systems and Computer Facilities Districts Ch. 16.Repealed Ch. 16.5.Repealed Ch. 16.6.Enhanced Prepaid Wireless Telecommunications Service Charge Ch. 16.7.Statewide 911 Services Ch. 16.8.Public Safety Telecommunicator Training Ch. 16.9.Public Safety Telecommunicator Employment Ch. 17.Fire Safety Inspections; Arson Investigations Ch. 17.5.Pre-Planning Inspections Ch. 18.Animal Control Centers Ch. 19.Fire Protection Territories Ch. 19.5.Repealed Ch. 20.Universal 911 Emergency Telephone Number Ch. 21.Repealed Ch. 21.5.Severe Weather Warning Sirens Ch. 22.Meet and Confer for Public Safety Employees Ch. 22.5.Public Safety Agreements Ch. 23.Community Fast Responders Ch. 24.Vehicular Carbon Monoxide Testing Ch. 25.T-CPR Training for Public Safety Telecommunicators Ch. 25.5.Indiana Crime Guns Task Force Ch. 26.Marion County Crime Reduction Pilot Project Ch. 27.PFAS-free Firefighter Gear Ch. 28.Fire Service Reports Ch. 29.1.Law Enforcement Civilian Oversight Boards and Commissions

IC 36-8-1Chapter 1. Definitions

36-8-1-1Application of chapter 36-8-1-2"1925 fund" 36-8-1-3"1937 fund" 36-8-1-4"1953 fund" 36-8-1-5"1977 fund" 36-8-1-6Repealed 36-8-1-7"Local board" 36-8-1-8"Member of the fire department" 36-8-1-9"Member of the police department" 36-8-1-9.5"PERF" 36-8-1-10"Public way" 36-8-1-11"Salary of a first class patrolman or first class firefighter"; longevity increases; certified salary 36-8-1-12"Upper level policymaking position" 36-8-1-13"Americans with Disabilities Act"

Source: official Indiana text · Last verified 2026-08-27

Frequently Asked Questions About Indiana § 36-7-41-13

What does Indiana Code § 36-7-41-13 cover?

Section 36-7-41-13 ("Local professional sports development fund") is part of the Indiana Code, the codified statutory law of Indiana. It sets out the legal rule or procedure described in the text above. Statutes are amended regularly, so always verify against the official source.

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Official text of § 36-7-41-13 at the Indiana source

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Indiana § 36-7-41-13 - Local professional sports development fund

§ 36-7-41-13. Local professional sports development fund

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Frequently Asked Questions About Indiana § 36-7-41-13

What does Indiana Code § 36-7-41-13 cover?

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Is this the official text of Indiana law?

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